NGI The Weekly Gas Market Report / NGI All News Access

FERC OKs Expansion of NGPL Storage Field in Texas

FERC has issued a certificate to Natural Gas Pipeline Company of America (NGPL) to add 10 Bcf of working gas capacity and increase its peak-day withdrawal and late-season withdrawal capabilities at its North Lansing Storage Field in Harrison County, TX.

The project calls for NGPL to construct and operate facilities that would allow it to convert 10 Bcf of cushion gas to working gas, increasing the working gas capacity of the North Lansing Storage site to 95.2 Bcf. NGPL plans to construct 12 new injection/withdrawal wells; one 13,000 horsepower electric compressor unit; 8.7 miles of 30-inch diameter pipeline to loop a portion of the existing lateral between the North Lansing Compressor Station 388 and NGPL's Gulf Coast mainline; along with a 30-inch tap on the mainline; looping on various field pipes; and new and upgraded metering facilities.

The storage expansion, which will cost approximately $49.2 million, would increase the North Lansing's certificate peak-day withdrawal level to 1,240 MMcf/d from 1,100 MMcf/d, the Kinder Morgan pipeline subsidiary said [CP05-405].

The maximum total inventory of the North Lansing Field would remain the same -- at 156 Bcf. The storage field is located at the south end of NGPL's pipeline system, and is accessible to customers serving the Gulf Coast and East Coast markets.

NGPL said it has executed four binding precedent agreements with one affiliated shipper and two non-affiliated shippers at negotiated rates for the incremental service on NGPL's Gulf Coast system. The pipeline said the incremental shippers have signed five-year, fixed-rate contracts for the entire volume.

©Copyright 2006 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.

Copyright ©2018 Natural Gas Intelligence - All Rights Reserved.
ISSN © 2577-9877 | ISSN © 1532-1266
Comments powered by Disqus