FERC to write enviro review on Texas Gas project in Indiana

The staff of the Federal Energy Regulatory Commission will prepare an environmental assessment (EA) for the Southern Indiana Market Lateral Project, which involves construction and operation of facilities by Texas Gas Transmission LLC in Henderson County, Kentucky, and Posey County, Indiana.

The commission said in a Jan. 9 notice that it will use this EA in its decision-making process to determine whether the project is in the public convenience and necessity. The scoping period where input is taken on what should be covered in the EA will close on Feb. 9.

Texas Gas proposes to construct and operate a new 29.9-mile-long, 20-inch-diameter natural gas pipeline lateral and an approximate 0.9-mile-long, 10-inch-diameter natural gas pipeline lateral extending from Texas Gas’ facilities in Henderson County, Kentucky, to interconnections with two industrial facilities in Posey County, Indiana. The Southern Indiana Market Lateral Project would provide about 166,000 million British thermal units per day of firm transportation capacity.

The project is fully subscribed and will serve Midwest Fertilizer Co. LLC’s proposed fertilizer plant and SABIC Innovative Plastics Mt. Vernon LLC’s existing plant and proposed cogeneration facility. Texas Gas wants to begin full construction by Sept. 1, 2015, and place the project facilities in service by July 1, 2016.

Texas Gas received binding bids from two parties for firm transportation capacity on its existing mainline and market lateral, and also on the proposed new pipeline lateral.

  • Texas Gas executed a Precedent Agreement with SABIC that provides for 56,000 MMBtu/d of firm transportation service on the proposed lateral at negotiated rates for delivery to SABIC’s existing facility and its proposed cogen plant under development for a primary term of 20 years.
  • Texas Gas executed a Precedent Agreement with Midwest Fertilizer that provides for 110,000 MMBtu/d of firm transportation service on the proposed lateral at negotiated rates for delivery to Midwest Fertilizer’s proposed fertilizer plant for a primary term of 20 years.

SABIC is proposing to construct the state-of-the-art cogen plant that will use natural gas to produce a majority of the steam for its existing chemical plant and generate electricity for on-site use. Currently, coal-fired boilers provide 40% of the site’s steam needs. SABIC is building the cogen plant to replace the existing coal-fired boilers to address the U.S. EPA’s Maximum Achievable Control Technology Standards for industrial, commercial, and institutional boilers.

Midwest Fertilizer is proposing to construct a nitrogen fertilizer plant that will produce fertilizer for Midwest farmers who currently depend on imported product. The pipeline project is designed to provide 110,000 MMBtu/d of firm natural gas transportation to service the proposed Midwest Fertilizer facility.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.