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FERC OKs MPP Project Facilities in Pennsylvania for Service

FERC has approved Tennessee Gas Pipeline's (TGP) request to place into service the remaining facilities of its MPP Project in Pennsylvania, which would provide producers with an additional 240,000 Dth/d of takeaway capacity to transport gas to Northeast markets.

The Kinder Morgan pipeline got clearance to place into service the remaining facilities at Compressor Stations 219, 303 and 310 associated with its MPP Project in Pennsylvania. On Sept. 6, the Federal Energy Regulatory Commission authorized the pipeline's request to place into service Loop 313 and Compressor Station 313 [CP12-28].

The project consists of about eight miles of 30-inch diameter pipeline looping and modifications to four compressor stations in Pennsylvania to provide incremental transportation capacity from the Marcellus region to existing delivery points on the TGP system. The pipeline told the Commission that backfilling at Compressor 219 should be completed by Friday (Oct. 25).

All of the capacity is subscribed through agreements with Chesapeake Energy Marketing Inc. (140,000 Dth/d) and Southwestern Energy Services Co. (100,000 Dth/d), according to the pipeline.

Although different, the MPP Project complements TGP's Northeast Upgrade Project, which would carry an additional 636,000 Dth/d of gas from the Marcellus Shale to Northeast markets (see Daily GPI, Oct. 15). Both the Northeast Upgrade and MPP projects are scheduled to go into service on Nov, 1.

The Northeast Upgrade, which FERC approved in mid-2012, will allow additional Marcellus gas to be transported along Tennessee's 300 Line to an interconnect with Algonquin Gas Transmission in Mahwah, NJ, to serve growing markets in the Northeast.

To create the additional firm capacity, Tennessee's project includes five 30-inch diameter pipeline loops and modifications to four existing compression stations. The project shippers are Chesapeake Energy Marketing Inc. (429,300 Dth/d) and Statoil Natural Gas LLC (206,700 Dth/d), under contract terms of at least 20 years.

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