Ozark Gas Transmission received FERC authorization last Thursday to make a quick fix to its system to increase its maximum capacity from 330 MMcf/d to 400 MMcf/d to handle increased gas volumes coming from the Fayetteville Shale in Arkansas near the eastern end of the Ozark system (CP07-381).

Ozark had requested approval for the capacity increase after it held a successful open season earlier this year. The pipeline, a subsidiary of Atlas Arkansas Pipeline and Atlas Pipeline Mid-Continent LLC, said it is negotiating with five shippers that have requested a total of 98 MMcf/d of transportation out of the Fayetteville area. In its application for a certificate amendment Ozark said the Fayetteville production, which did not exist three years ago, is currently at 105.7 MMcf/d and growing. The additional capacity will mean new wells will not have to be shut in until other planned transmission projects are completed, Ozark told the Federal Energy Regulatory Commission.

Because of changes in the pattern of gas receipts and deliveries on its system as well as modifications in its system operational configuration to accommodate additional onshore volumes, Ozark said no new facilities will be required to achieve the proposed increase in maximum capacity.

Under current operating parameters, Ozark states that its system is fully subscribed for FTS Service for both the summer of 2007 as well the coming winter of 2007/2008. Because of the growing Fayetteville production, Ozark said it explored ways in which it could enhance the capacity of its system without having to construct new facilities. Under its new operating scenario the pipeline said no existing shipper's firm transportation service entitlements will be adversely affected.

In June Ozark held a nonbinding open season for capacity on an expansion that would extend its existing system in the Oklahoma-Arkansas-Missouri region to Mississippi. The project, known as the Ozark Express Expansion, is a combination of a proposed East End Expansion to new delivery points east of the Mississippi River and a West End expansion that originates in Oklahoma.

It would involve constructing 350 miles of 36-inch diameter pipeline from Latimer County, OK, to a new interconnect point east of the Mississippi River in Panola County, MS, as well as 54,000 hp of additional compression. The expanded facilities would have the capability of transporting 1.1 Bcf/d from three supply basins -- the Anadarko Basin in Oklahoma, the Arkoma Basin in Oklahoma and Arkansas, and the Fayetteville Shale area in Arkansas. Construction would start in 2009.

The estimated $950 million expansion would enable Ozark to interconnect with Texas Gas Transmission LLC, ANR Pipeline and Trunkline Gas, and potentially tie in with a number of other pipelines. Ozark currently interconnects with the Natural Gas Pipeline of America, Mississippi River Transmission and Texas Eastern Transmission.

©Copyright 2007 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.