Gulf Crossing Pipeline Co. LLC recently began construction on a new gas pipeline lateral that will serve Panda Sherman Power LLC’s in-construction power plant in Grayson County, Texas.
The Federal Energy Regulatory Commission had approved the lateral project on Sept. 12. The company on Oct. 23 filed with FERC its first monthly construction update report, saying that preliminary site work on the pipeline is underway.
Gulf Crossing is an interstate natural gas pipeline company consisting of approximately 354 miles of 42-inch diameter pipeline that provides transportation services in the states of Alabama, Louisiana, Mississippi, Oklahoma and Texas.
Panda Sherman, a merchant power plant developer, is constructing a 758-MW, gas-fired turbine power plant, known as the Panda Sherman Power Plant I, in Grayson County, Texas, near the City of Sherman. The power plant, backed by Panda Power Funds, is expected in operation in 2014.
Gulf Crossing is constructing and will operate a 16.5-mile, 16-inch diameter pipeline lateral, with associated meters and auxiliary facilities, extending from Gulf Crossing’s Sherman Compressor Station near Sherman, Texas, to an interconnection with Panda Sherman’s power plant. The lateral will be capable of providing up to 278,400 dekatherms (Dth) per day of firm transportation service. Gulf Crossing estimates that the proposed facilities will cost $26.3m.