Trunkline Gas Co. said it will move forward with its North Texas Expansion Project based on a solid market response in a recent open season. The project will include construction of about 45 miles of 30-inch diameter pipeline along an existing right of way from the Kountze, TX, compressor station to the Longville, LA, compressor station. It will provide about 400 MMcf/d of additional capacity and is estimated to be in service in 2007.
"The response from potential customers definitely indicates a need to have additional pipeline capacity available to move more Texas natural gas eastward, which is exactly what this project is designed to do," said Rob Bond, COO of Panhandle Energy, Trunkline's immediate parent company. Precedent agreements still must be negotiated, but Trunkline said it intends to proceed with the National Environmental Policy Act Pre-Filing Review process to secure timely approval of the project by the Federal Energy Regulatory Commission.
The expansion will give customers increased access to additional North and East Texas gas supply as well as imported liquefied natural gas (LNG). About 6.6 Bcf/d of LNG import capacity has been approved by FERC for construction in the general area of the proposed pipeline expansion. By expanding the pipeline from Kountze to Longville, Trunkline will be able to receive onshore production originating in the Bossier and Barnett Shale plays, which are growing rapidly, and from the proposed LNG terminals planned for the Texas Gulf Coast through existing or proposed intrastate pipeline and storage connections.
Potential pipeline connections are expected to include links to Energy Transfer Partners LP (Houston Pipe Line -- Texoma), Kinder Morgan Intrastate Pipeline, Enbridge Energy Partners, Centana Intrastate Pipeline, Inc. -- Spindletop Storage (a subsidiary of Duke Energy Field Services) and Enstor's proposed Houston Hub.
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