FERC on Monday issued a certificate to Transwestern Pipeline to upgrade existing compressor facilities on its Panhandle Lateral, which runs through parts of New Mexico, Texas and Oklahoma.

Transwestern plans to replace the compressor wheels at its P-1 and P-2 Compressor Stations located in Roosevelt County, NM, and Deaf Smith County, TX, respectively. The project would raise the capacity on the Panhandle Lateral by 10,000 Dth/d from the P-1 Compressor Station to the lateral’s terminus at the P-3 Compressor Station, the FERC order said [CP05-4].

Although no new or existing shippers have yet committed to the capacity, Transwestern said it anticipated there would be increased market demand for the incremental capacity in part because gas can be delivered to interstate pipelines in the vicinity of the P-3 Compressor Station, which provide access to Mid-Continent markets.

Absent the new capacity, the pipeline said it could be capacity constrained at its P-3 Compressor Station during the upcoming winter heating season. Transwestern estimated that the cost of the compressor modifications would be $250,000. Rolling in the project cost would have a “virtually negligible impact” on the pipeline’s rates, resulting in a rate hike of less than 0.02 cents/Dth, the order noted.

“Since…the project will have the beneficial effects of enhancing lateral reliability and providing a low-cost means for additional gas supplies to move to Midwest markets this winter season without significant adverse impacts, the proposal is required by the public convenience and necessity,” FERC said.

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