Noting that the pipeline can’t even satisfy the demands of its existing shippers, a group of mostly producers has objected to El Paso Natural Gas’ negotiation of two new capacity contracts with PPL EnergyPlus LLC.

In a protest filed at FERC last Monday, Indicated Shippers said they opposed the two contracts — one a negotiated-rate deal and a second for 5,000 MMBtu/d of firm transportation capacity — because “El Paso is selling additional firm capacity when it is currently unable to meet the needs of its existing firm shippers.”

Moreover, “El Paso does not explain where this additional capacity is coming from, and why the contracts extend until 8/31/2028 and 8/31/2031, respectively.”

The pipeline’s shippers “continue to experience pro-rata cuts to their firm capacity at an alarming rate, which in turn costs these firm customers millions of dollars per year in lost demand charges and replacement costs for gas that was cut,” the Indicated Shippers told FERC.

The group called on the Commission to order El Paso not to negotiate additional firm transportation contracts, until it can supply capacity to its existing firm customers “without pro-rata cuts.”

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