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Tetco Marcellus Expansion Gets FERC Nod

FERC Thursday issued a certificate to Texas Eastern Transmission (Tetco) to expand its mainline system in southwestern Pennsylvania to transport Marcellus Shale gas to markets in the Northeast.

The TEAM (Texas Eastern Appalachia to Market Appalachia) project calls for the construction of pipeline looping and facility modifications on various segments of Tetco's mainline between the Holbrook and Marietta Compressor Stations in Green and Lancaster counties, resulting in 200,000 Dth/d of additional capacity from receipt points on Tetco's system in eastern Ohio and western Pennsylvania to delivery points in Tetco's market area.

Tetco, a subsidiary of Spectra Energy Inc., plans to build 1.8 miles of 36-inch diameter pipeline loop in Greene County; 3.23 miles of 36-inch diameter pipeline loop in Fayette County, PA; abandon by removal about 7.3 miles of existing 24-inch diameter line in Franklin County, PA, and replace it in the same right-of-way (ROW) with a 36-inch diameter line; and abandon by removal approximately four miles of existing 24-inch diameter Line 1 in Adams County, PA, and replace the line in the same ROW with a 36-inch diameter pipeline.

All told, the project entails 17.3 miles of 36-inch diameter pipeline and a net increase of 20,720 hp of compression at the Bedford Compression Station, raising the station's total certificated hp to 54,600 hp from 33,880 hp.

According to the Federal Energy Regulatory Commission (FERC) order, Tetco has executed precedent agreements with Range Resources-Appalachia LLC for 150,000 Dth/d of firm transportation and Chesapeake Utilities Corp. for 40,000 Dth/d of firm transportation services, with primary terms of 16 years and 15 years, respectively. Chesapeake's firm transportation entitlement will increase to 50,000 Dth/d one year after the project goes into service, Tetco said [CP11-67].

The TEAM expansion, which Tetco estimates will cost $197 million, is expected to go into service in November 2012.

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