Shale Daily / NGI All News Access

Texas Eastern Offering Utica/Marcellus-Gulf Coast Capacity

Spectra Energy's Texas Eastern Transmission LP is offering capacity on its Gulf Market Expansion Project, which would give Marcellus and Utica Shale gas access to growing Gulf Coast markets in Louisiana and Texas, including for future export of liquefied natural gas (LNG).

In a posting on its website, Spectra said industrial and power generation demand for gas is growing in the Gulf Coast region.

"In addition, the project offers mainline markets the opportunity to access the growing supply basins in the Northeast," the pipeline said. "The transportation service offerings are designed to offer shippers the flexibility to customize their supply basin access to their preferences by selecting one or a combination of transportation(s)."

The project would entail reversal of some mainline compressor stations, installation of new stations in select locations in the Gulf Coast region and "limited" pipeline looping, Spectra said. "The project as envisioned would result in up to 150,000 Dth/d of firm north-to-south mainline capacity from zone M2 to zone M1 (Kosciusko), 415,000 Dth/d of firm north-to-south mainline capacity from zone M1 (Kosciusko) to zone WLA, and 300,000 Dth/d of firm south-to-north mainline capacity from Zone STX to Zone WLA," Spectra said.

Shippers would be able to design their service on a path basis depending upon their supply source preferences, Spectra said. Six north-to-south paths are being offered with receipt points of M2, M1 (Kosciusko) or ELA and deliveries at M1, ELA or WLA. Two south-to-north paths are being offered with receipt points at STX (Provident City) or STX (Agua Dulce) and delivery at WLA.

"Shippers may request other receipt or delivery points, which will be considered on a case-by-case basis, taking into consideration the facilities required to satisfy such requests," Spectra said.

Last January, Bill Yardley, president of Spectra's U.S. transmission and storage business, talked about demand growth in the South.

"This demand growth is going to be driven by multiple market segments, both domestic and abroad, including LNG [liquefied natural gas] exports, GTL or gas-to-liquids facilities, power generation, industrials and the petrochemical resurgence and exports to Mexico. We see this as a 10 Bcf/d demand potential, and it's going to need supply from a variety of sources. The Gulf Coast and Midcontinent shales, yes, but most likely, the Appalachian shales as well [see Shale Daily, Jan. 17]."

Spectra said it has secured anchor customers for the Gulf Market Expansion. A binding open season for additional capacity is under way and runs through July 19.

In an outline of the project, Spectra said the Gulf Market Expansion is part of its larger effort to develop North-South transportation services. "This capability, combined with Texas Eastern's access to Perryville [Hub], Barnett, Haynesville and Fayetteville [shale] supply through its interconnections with the Texas Gas Greenville lateral, Gulf Crossing, Southeast Supply Header, Midcontinent Express and Acadian pipelines, provides significant supply optionality."

Further, Spectra said growing South Texas gas reserves could move to Gulf Coast markets through expansion of its mainline.

Copyright ©2018 Natural Gas Intelligence - All Rights Reserved.
ISSN © 2577-9877 | ISSN © 2158-8023
Comments powered by Disqus