Tennessee Gas Pipeline Co. is holding a binding open season for about 400,000 Dth/d of firm capacity proposed to be available from various 800 Line receipt points upstream of Tennessee's Station 823 in Kinder, LA. Delivery points available are in Tennessee Zones L and 1 under Rate Schedule FT-A.
The open season for the 800 Line expansion will close at 3:00 p.m. CCT on Dec. 13. The project will involve valve and pipeline modifications in addition to the acquisition of certain third-party offshore pipeline assets. The in-service date of the capacity is expected to be Nov. 1, 2009 subject to Federal Energy Regulatory Commission and other approvals.
The pipeline said it expects to be able to provide firm capacity at its currently effective tariff rates, which are 12 cents/Dth for Zone L and 22 cents/Dth for Zone 1.
Tennessee said construction of laterals and expansions of existing or new receipt and delivery points are not part of the project but may be considered as an addendum to the scope and rate design within the open season. Existing shippers that currently hold firm capacity that could be used in lieu of the expansion are invited to notify Tennessee if they would like to permanently release their capacity to prospective shippers in the open season. Notification of the desire to turn back capacity is required by Dec. 3.
With the existing and active construction of about 10 Bcf/d of liquefied natural gas (LNG) regasification capacity in southwest Louisiana and southeast Texas, combined with the influx of new Midcontinent gas into the Perryville Hub in Louisiana, Tennessee said there is not enough mainline capacity to transport the growing supply out of the southwest Louisiana interstate corridor.
"Tennessee is uniquely situated so as to be able to provide an economic bridge from this pending area of constraint in Southwest Louisiana to Tennessee's 500 Line located in eastern Louisiana and where there is ample capacity to link to the growing Southeast and Northeast Tennessee Gas Pipeline markets," the pipeline said.
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