Tennessee Gas Pipeline has filed plans to increase capacity onsix separate lines in the Gulf of Mexico that together, wouldrepresent an increase of over 720 MMcf/d in offshore line capacityowned by Tennessee and other parties.

An open season that closed last December resulted in firmtransportation agreements that range from three months to 15 years.Coral Energy contracted for 27 MMcf/d for five years; Duke Energycontracted for 23.6 MMcf/d for one year and 11 MMcf/d for twoyears; Amoco Energy contracted for 10 MMcf/d for three months andVastar Resources made the largest commitment, totaling 30 MMcf/dfor the first year, 20 MMcf/d through the second year, 10 MMcf/dthrough the fourth year, 5 MMcf/d through the sixth year and oneMMcf/d for the full 15 years.

Tennessee says the increased pipeline capacity “will providemuch needed capacity to transport gas produced from new productionareas in the offshore Louisiana area where significant drilling anddevelopment activity is occurring.”

There will be no new construction on the lines. The new volumeswill come from increased pressure on the lines. Tennessee proposesinstalling an OPP device, a pressure transducer and a dataacquisition collector (DAC) for a total cost of only $120,100.Although not fully subscribed, Tennessee told FERC the expansionshould be approved because the costs are “de minimus.”

The company said it was “confident that it ultimately will besuccessful in obtaining firm commitments for all of the expansioncapacity because of the significant gas supplies that are availablein the offshore Louisiana area [and] the competitive rates offeredby Tennessee.”

The 527A-100 Line, owned by Tennessee, is a 40-mile section of26-inch pipeline from South Pass Block 27 to Tennessee’s Station527. Tennessee abandoned this line, but under the current plan itscapacity would be increased to 200 MMcf/d.

The SP 77 System, located offshore Louisiana, is owned jointlyby Tennessee and Columbia Gulf. It consists of two lines:

The 527A-600 Line, a 36-inch pipe from South Pass Block 55 toTennessee’s 527A-100 Line in Plaquemines Parish, LA, has acertificated design capacity of 500 MMcf/d. Its capacity wouldincrease by 200 MMcf/d.

The 527A-700 Line, a 26-inch pipeline extending from South PassBlock 77 to a platform jointly owned by Tennessee and Columbia Gulfin South Pass Block 55, has a certificated design capacity of 425MMcf/d. This line would increase by 90 MMcf/d.

In addition, Tennessee and other parties own three supplylaterals upstream of the SP 77 System that will also need to beupgraded:

The 527A-900 line, owned jointly by Tennessee and Columbia Gulf,connects eight miles of 20-inch pipeline from a production platformin Mississippi Canyon block 148A and connects with South Pass Block55, with a design capacity of 100 MMcf/d. It would increase by 195MMcf/d.

The 527A-1300 line, jointly owned by Tennessee, Columbia Gulfand Koch Gateway Pipeline, consists of 15 miles of small pipe froma production platform in South Pass Block 49 to South Pass Block55, with certificated capacity of 40 MMcf/d. It would increase by30 MMcf/d.

The 527A-1400 lines, also jointly owned by Tennessee, ColumbiaGulf and Koch, consists of three miles of small diameter pipe fromanother production platform to South Pass Block 49, with designcapacity of 23 MMcf/d. It would increase by 7 MMcf/d.

Sarah McKinley

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