Texas Gas Transmission LLC has received FERC approval for its Northern Supply Access Project, which would carry natural gas from the northern end of its system to Midwestern and southern markets.
The project [CP15-513] would involve modifications at eight existing compressor stations along the company’s existing pipeline and one new compressor station. Modifications would be made to stations in Lawrence and Dearborn counties in Indiana, Webster, Breckinridge and Jefferson counties in Kentucky, Tipton County in Tennessee, Coahoma County in Mississippi and Morehouse Parish in Louisiana. A new 23,877 hp compressor station would be built in Hamilton County, OH.
Texas Gas told the Federal Energy Regulatory Commission that the project would allow it to transport gas produced in the Marcellus/Utica region to Midwestern and southern markets.
The pipeline previously had eight shippers signed up for the project taking a total firm capacity of 384,000 MMBtu/d. However, one of these shippers subsequently filed for bankruptcy, dropping the total of committed firm capacity to 284,000 MMBtu/d, Texas Gas said. The pipeline told FERC it is not making any modifications to the project because of this.
The Commission denied Texas Gas’ request for rolled-in rate treatment for the project, saying, “…a pipeline must demonstrate that rolling in the costs associated with the construction and operation of new facilities will not result in existing customers subsidizing the expansion.”
FERC staff launched its environmental assessment of the project last September (see Daily GPI, Sept. 8, 2015).
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