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Texas Gas Lateral Would Serve TVA Generating Unit

Texas Gas Transmission LLC is seeking authorization at FERC for its Western Kentucky Lateral Project in Muhlenberg County, KY, which would deliver natural gas to a planned generating unit at Tennessee Valley Authority's (TVA) Paradise Fossil Plant.

Texas Gas proposes to construct a lateral consisting of 22.5 miles of 24-inch diameter pipeline, a meter and regulator station, and appurtenant facilities to provide up to 230,000 Dth/d of firm transportation capacity. The estimated cost of the project is $81 million [CP15-105].

The lateral would extend from the Texas Gas Midland 3 Compressor Station to a proposed interconnection with the Tennessee Valley Authority's (TVA) Paradise Fossil Plant. The project is supported by a binding agreement with TVA for the full design capacity at negotiated rates for a primary term of 20 years.

"Strong market support for the project is demonstrated by TVA's contractual commitments," Texas Gas said. "The project will provide 230,000 MMBtu/d of transportation capacity to serve TVA's proposed new natural gas-fired generating plant that will use natural gas to meet TVA's commitments 'to bring reliable, low-cost energy to the people of the Tennessee Valley...'

"TVA is building the combined-cycle natural gas-fired power plant to comply with the MATS [Mercury and Air Toxics Standards (see Daily GPI,June 3, 2014)], recently issued by the U.S. EPA [Environmental Protection Agency], regulating emissions of hazardous air pollutants. The Western Kentucky Lateral will help TVA and its customers realize the benefits offered Paradise Plant by transporting natural gas for the plant's fuel needs."

Texas Gas asked for a Federal Energy Regulatory Commission order by December to allow construction to begin by January for in-service by Sept. 2, 2016 to satisfy its agreement with TVA.

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