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Texas Gas Offering Ohio-Louisiana Capacity

Texas Gas Transmission is holding a binding open season through Jan. 13 for primary firm natural gas backhaul transportation service from Ohio's Marcellus and Utica shales into Lebanon, OH, pipeline interconnects, with an ultimate destination to serve utilities in the Midwest and South.

The Ohio-Louisiana Access Project would work with previously announced Gulf Coast industrial plants and liquefied natural gas export projects, the company said.

The open season is for primary firm north-to-south service from mutually agreeable receipts in Zones 4, 3, 2 and 1 for deliveries into Zones SL, 1, 2, 3 and 4.

"The project's initial binding design and rate structure is based on facilities required to provide a maximum of 500,000 MMBtu/d of firm backhaul service from Zone 4 to Zone SL; however, deliveries into more northern zones (Zones 4, 3, 2 and 1) or receipts from the Fayetteville Shale supplies in Zone 1 (Lula) will allow for a larger total project," Texas Gas said.

The company is evaluating additional designs and rate structures, and in the event bids are received in excess of 500,000 MMBtu/d, it may enter into subsequent binding negotiations at rates that will be at or above the initial project's comparable rate design.

Texas Gas has entered into a binding precedent agreement with a foundation shipper for capacity in the project. In exchange for its early commitment to the project, the foundation shipper's contracted firm capacity of 300,000 MMBtu/d is not subject to proration, Texas Gas said.

The project’s anticipated in-service date is June 1, 2016. For information, contact David Moseley, david.moseley@bwpmlp.com, (270) 688-6818; Jeff Bittel, jeff.bittel@bwpmlp.com, (713) 479-3421; Jill Edwards, jill.edwards@bwpmlp.com, (713) 479-8134; or Norman Fuchs, norman.fuchs@bwpmlp.com, (713) 479-8666.

ISSN © 2577-9877 | ISSN © 1532-1231

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