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NGPL Offers Marcellus Gas a Ride South on Its Mainline

Natural Gas Pipeline Company of America LLC (NGPL) is gauging interest in a potential reversal of part of its Gulf Coast mainline system to move natural gas from the Marcellus and Utica shales to markets along the Gulf Coast, launching a 14-day nonbinding open season Tuesday.

The Kinder Morgan subsidiary said the expansion would increase its capability to flow up to 750,000 Dth/d of incremental volume from the Rockies Express Pipeline (REX) interconnection at Moultrie, IL, to points south on its mainline, through the reversal of some existing lines that are currently flowing south to north.

The reversed NGPL capacity would connect with REX capacity that also would be reversed. REX is seeking regulatory approval of a plan to expand and reverse the eastern segment of its mega-pipe, from Clarington, OH to Audain, MO to flow East-to-West, with potential capacity up to 2.5 Bcf/d (see Shale Daily, Jan. 30). Thus Marcellus/Utica gas could flow west from Ohio on REX and make a left turn at the NGPL connection to head south.

"This project will help satisfy the needs of both producers and end-use customers as gas production increases in the Utica and Marcellus shale, and markets continue to grow in Louisiana and South Texas," said Kinder Morgan Natural Gas Pipelines Central Region President David Devine. NGPL said its system can provide access to seven proposed liquefied natural gas plants with 14.7 Bcf/d of potential gas demand.

NGPL’s expansion project would provide for incremental firm transportation service from the existing interconnect with REX to existing and growing markets along the Texas and Louisiana Gulf Coast, sourcing gas from the REX Moultrie receipt point and transporting it south to the Texok, South Texas and Louisiana delivery zones.

The potential expansion would include the reversal of compressor stations, and minor pipe replacement and upgrade activities along NGPL.

The nonbinding open season ends at 4 p.m. CT on March 4. Nonbinding declarations of interest should be sent to Jim Lelio, who directs business development for Kinder Morgan Natural Gas Pipelines Central Region, at jim_lelio@kindermorgan.com.

Kinder Morgan operates NGPL and owns a 20% interest in the pipeline company, which has close to 9,200 miles of pipeline, more than one million compression hp and 280 Bcf of working gas storage. Myria Holdings Inc. owns the remaining interest in NGPL.

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