Tennessee Gas seeks approval to add pipeline capacity into the southeast

Tennessee Gas Pipeline Co. LLC applied Jan. 30 at the Federal Energy Regulatory Commission for a certificate of public convenience and necessity to construct, install, modify, operate, and maintain certain compression facilities in West Virginia, Kentucky, and Tennessee (referred to as the “Broad Run Expansion Project”).

The project is comprised of two components: the construction, installation, operation and maintenance of compression and related facilities in order to enable Tennessee to provide up to 200,000 dekatherms (Dth) per day of firm incremental transportation service to meet a specified market need; and the replacement of older, less efficient compression facilities with new, more efficient compression facilities at two compressor stations.

To ensure timely construction of the project, Tennessee requested the issuance of the requested certificate and abandonment authorizations by Jan. 31, 2016. The issuance of the requested authorizations by that date will allow Tennessee to complete the acquisition of property for the new compressor station locations, materials procurement, and construction of the project in a time frame compatible with the Nov. 1, 2017, in-service date requested by the shipper, Antero Resources Corp., which has executed a binding precedent agreement with Tennessee that provides the market support for the project.

The project would allow the transport of up to 200,000 Dth per day of natural gas produced in the Utica and Marcellus Shale supply areas to markets in the southeastern United States.

The estimated cost of the Market Component (the new facilities) and Replacement Component (replacement of old facilities), including contingency, overheads, and Allowance for Funds Used During Construction (AFUDC), is about $337.9m and $68.5m, respectively.

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.