FERC last Monday issued a certificate to CMS Trunkline Gas Co. LLC to make modifications to its metering facilities to accommodate increased deliveries from affiliate CMS Trunkline LNG’s import terminal in Lake Charles, LA.

The certificate order is a companion to the Commission’s mid-December order approving a $177.2 million expansion of the CMS Trunkline liquefied natural gas facility, which already is the largest LNG terminal in North America. The company plans to build a second marine unloading dock and enlarge the storage and send-out capabilities of the LNG import facility (See NGI, Dec. 23, 2002)). The expansion has a targeted in-service date of January 2005 (CP02-60).

In the latest order, CMS Trunkline Gas received the green light to make changes to metering facilities at the tailgate of the LNG terminal facility, which would almost double the maximum delivery capacity of its South Louisiana pipeline to 1.3 Bcf/d. FERC also gave CMS Trunkline Gas the go-ahead to operate its pipeline system downstream of the LNG metering facilities at the expanded level to accommodate increased LNG imports at the terminal (CP02-55).

As a result of the project, CMS Trunkline Gas’ maximum receipt capability on its 45.8-mile, 30-inch diameter system in Louisiana will increase to 1.2 Bcf/d from 0.7 Bcf/d on a sustained basis and to 1.3 Bcf/d from 1 Bcf/d on a peak-day basis, according to the order.

BG LNG Sales Inc. has entered into a 22-year contract with Trunkline LNG for all available existing capacity at its terminal, and for additional new firm storage. To satisfy its contractual obligations, Trunkline LNG asked CMS Trunkline Gas to carry out the modifications to its metering facilities.

Dearborn, MI-based CMS Energy, parent of CMS Trunkline LNG and CMS Trunkline Gas, has reached a definitive deal to sell both subsidiary companies, as well as other assets, to Southern Union Panhandle, a joint venture partnership between Wilkes-Barre, PA-based Southern Union and AIG HighStar Capital LP, for an estimated $1.83 billion (See NGI, Jan. 6)).

The sale is expected to be completed during the first quarter, assuming all regulatory clearances are received.

Following the announcement of the pending sale, Southern Union said the FERC-approved expansion of the Trunkline LNG facilities would continue “on track,” and would be “one of the principal points of our analysis” in the coming weeks and months.

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