In response to “multiple inquiries,” Tennessee Gas Pipeline Co. LLC has launched a package of proposals to transport as much as 400,000 Dth/d of natural gas from the Utica Shale to the Texas Gulf Coast beginning as soon as April 1.
Binding capacity bids are being taken through Dec. 11 for long-term, firm transportation,Tennessee said. Open season No. 888 also is designed to assess the capacity availability and facility requirements associated with a proposal to repurpose one of four gas mainlines to carry natural gas liquids (NGL) from Ohio to fractionators at Mont Belvieu, TX.
Tennessee has two firm takeaway options from Zone 4, south of Station 219 near Mercer, PA, to Zone 1 delivery points:400,000 Dth/d through March 31, 2034; and 100,000 Dth/d through Sept. 30, 2017.
A third package offers two firm capacity options to carry NGLs from Appalachia beginning April 1 through March 31, 2034. The first option would deliver 165,000 Dth/d from Mercer to Texas, while the second proposal would carry close to 100,000 Dth/d.
An open season to test support for the 165,000 Dth/d option was launched last week (see Shale Daily,Nov. 11). Tennessee parent Kinder Morgan Energy Partners LP and MarkWest Utica EMG LLC are taking bids through Dec. 20 to assess support for the NGL pipeline, designed to start service in early 2016. The project would entail converting about 900 miles of one of the Tennessee gas mainlines to a Y-grade pipeline from Mercer to Natchitoches, LA, with a new NGL pipe that would then carry NGLs to Mont Belvieu. The NGL pipe could be expandable to 400,000 Dth/d.
The Kinder-MarkWest NGL takeaway project faces its biggest competition from NGL takeaway from Appalachia from Bluegrass Pipeline, offered by partners Williams and Boardwalk Pipeline Partners LP, whose open season was launched in late October (see Shale Daily,Oct. 25). Bluegrass would carry mixed NGLs from Appalachia beginning in late 2015. The project would require a portion of Boardwalk’s Texas Gas Transmission LLC gas system also to be converted to NGL service.
Parties interested in taking capacity on the Tennessee proposals may submit bids via e-mail to firstname.lastname@example.org. Additional information is available from Jason Connelly, (713) 420-2446; Rock Graham, (713) 420-4241); and Scott Minear, (713) 420-5177.
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