Flattening gas production from the Fayetteville Shale and other pipeline infrastructure in the region has prompted Ozark Gas Transmission LLC to repurpose some Arkansas gas pipeline facilities for refined products service.
The Spectra Energy Partners LP unit has asked FERC for permission to abandon 127.5 miles of its 20-inch diameter Line 1; 26.4 miles of its 10-inch diameter Line 2; and 4.8 miles of its 12-inch diameter Line 1-A. The mainline pipeline facilities are located between Sebastian and White counties in Arkansas. The pipeline also would abandon 29 metering, regulating and other facilities associated with the pipeline to be abandoned.
Ozark told the Federal Energy Regulatory Commission (FERC) it is working with firm shippers to provide alternative natural gas transportation. It asked for approval of its application by March 2.
"Over the last several years, firm contracts utilizing the segments of the Ozark system proposed herein for abandonment have declined dramatically due to a leveling off of production in the Fayetteville area, producer diversification away from dry gas plays and a significant increase in available capacity through transportation alternatives in the area with the additions of the Fayetteville Express Pipeline LLC [see Daily GPI, Dec. 21, 2009]...and Texas Gas' Fayetteville Lateral [see Daily GPI, April 17, 2009]," the pipeline told FERC in its filing.
"Ozark held an open season from March 12, 2014 to April 2, 2014 to evaluate long-term market demand for natural gas transportation on the pipeline facilities proposed herein for abandonment and did not receive any bids for capacity on this pipeline segment."
Ozark said it plans to lease the abandon pipeline to Magellan Pipeline Co. LP for conversion to refined petroleum products transportation service.
The Ozark system transports gas produced in the Arkoma Basin in eastern Oklahoma and western Arkansas, the Woodford-Caney Shale reservoir in eastern Oklahoma, and the Fayetteville Shale in central Arkansas to local distribution companies in Arkansas and Missouri and to interstate pipelines in northeastern and central Arkansas. Ozark is connected to several interstate pipelines in northeastern and central Arkansas, including Enable Mississippi River Transmission LLC, Enable Gas Transmission, Texas Gas Transmission LLC, Natural Gas Pipeline Co. of America, and Texas Eastern Transmission LP.