Panhandle seeks okay for ‘backhaul’ project for gas into Midwest, Gulf Coast

Panhandle Eastern Pipe Line Co. LP applied Feb. 23 at the Federal Energy Regulatory Commission for approval of system modifications necessary to enable Panhandle to provide 750,000 dekatherms per day (Dth/d) of east-to-west firm transportation service within the Market Zone of its pipeline system.

The proposed facilities will allow the pipeline to meet new demand for east-towest transportation of production from the Marcellus and Utica shale regions to the Midwest and Gulf Coast markets, while maintaining its existing firm service obligations from west-to-east contract paths. The proposal is referred to as the “Panhandle Backhaul Project.”

The Panhandle Backhaul Project will utilize certain existing pipelines and certain compressor stations that are already certificated and in-service, and will only require the specified changes to Panhandle’s system, including:

  • the reconfiguration of certain compressor station piping at certain existing compressor stations located in two states (Indiana and Illinois);
  • the construction and operation of certain auxiliary installations at the existing Edgerton, Zionsville, Montezuma, and Tuscola Compressor Stations;
  • the modification of certain piping, valves, and equipment at the existing Edgerton 10 Gate (Michigan) and Zionsville 3 Gate mainline valve settings and at the existing mainline scrubbers near the Montezuma Compressor Station; and
  • the construction and operation of certain tap installations to establish an interconnect with the proposed Rover Pipeline LLC near Defiance, Ohio and the existing interconnection with Trunkline Gas Co. LLC near Bourbon, Illinois, in order to enable east-to-west firm transportation service on Panhandle’s pipeline system.

The requested facility modifications are being designed primarily to meet the demand for additional transportation capacity to transport natural gas supplies to the Midwest and Gulf Coast market areas. Panhandle asked that the commission issue the requested certificate of public convenience and necessity by November 2015.

Incidentally, Rover filed an application concurrently with the Panhandle application requesting, among other things, authorization to construct, own, and operate a new interstate natural gas pipeline system with total system capacity of 3.25 billion cubic feet per day (Bcf/day), comprised of approximately 711 miles of supply laterals and mainlines extending from the Marcellus and Utica shale supply areas in West Virginia, Pennsylvania, Ohio, and terminating in Livingston County, Michigan (called the “Rover Pipeline Project”).

Trunkline Gas is also filing an application concurrently requesting authorization to modify, install, construct and operate station piping at existing compressor and metering stations to allow for natural gas to flow bi-directionally within Zones 1B and 1A of its pipeline system. 

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.