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FERC OKs Compressor Station for LNG-Directed Coastal Bend Header

FERC has given Gulf South Pipeline Co. LP permission to build a compressor station in Texas for its proposed Coastal Bend Header project, which would create expansion capacity to deliver natural gas to a proposed liquefied natural gas (LNG) export terminal near Freeport, TX.

In a letter order Tuesday, the Federal Energy Regulatory Commission said Gulf South could proceed with construction of the Magasco Compressor Station in Sabine County, TX. The Commission added that an implementation plan Gulf South submitted in August 2016, supplemental information submitted in November 2016 and early this year satisfied several environmental conditions laid out in an order issuing certificate from June 2016, and an order amending certificate from last May [CP15-517].

The 1.4 Bcf/d Coastal Bend Header project is designed to serve Freeport LNG Development LP's export terminal. Specifically, the project calls for construction of about 65 miles of 36- and/or 42-inch diameter pipeline supply header.

The project would begin at an interconnect with Tennessee Gas Pipeline Co. LLC, eight miles northwest of Hungerford, TX, in Wharton County. It would terminate in Brazoria County, TX, at the existing Stratton Ridge meter site near Clute, TX, for delivery into the Freeport terminal.

In addition, Gulf South, a unit of Boardwalk Pipeline Partners LP, plans to expand its existing mainline system and provide primary and supplemental receipt points to supply the header and/or other new or existing delivery points near the header.

FERC issued a favorable environmental assessment for the Coastal Bend Header in January 2016. Plans for the pipeline were first unveiled in September 2014.

Last July, Boardwalk said the projectwas about 50% complete, and construction of two of the four compressor stations was underway. Last August, in an effort to capture demand growth driven by exports to Mexico via LNG, Boardwalk announced plans to place its South Texas transmission assets into lean gas service.

Also last August, Boardwalk teamed up with Sempra Energy for a nonbinding open season for the proposed Permian-Katy Pipeline. The 42-inch diameter pipeline would initially transport up to 2 Bcf/d from the Waha Hub in the Permian to the Texas Gulf Coast.

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