FERC seeks comment on enviro review for Texas Gas project in Indiana, Kentucky

The staff of the Federal Energy Regulatory Commission has prepared an environmental assessment (EA) for the Southern Indiana Market Lateral Project, proposed by Texas Gas Transmission LLC.

Texas Gas requests authorization to deliver approximately 53.5 million standard cubic feet per day of natural gas from its existing Robards Junction facilities in Henderson County, Kentucky, to one of itscustomers in Posey County, Indiana. FERC is taking comment on the environmental assessment until Oct. 14, the commission said in a Sept. 14 public notice.

In November 2014, Texas Gas filed an application for a Certificate of Public Convenience and Necessity to construct and operate natural gas pipeline facilities in Posey County, Indiana, and Henderson County, Kentucky. According to Texas Gas, one of two industrial customers decided to cancel its participation in the original project proposal, thereby requiring a change in the project’s design and scope. Therefore, on March 30, 2015, Texas Gas filed an amended application to incorporate these changes. No new landowners would be affected by the amended project. Texas Gas’ proposed action, as amended, is referred to as the Southern Indiana Market Lateral Project.

Texas Gas said it has fully executed a binding precedent agreement with customer SABIC Innovative Plastics Mt. Vernon LLC, located near Mount Vernon in Posey County, to provide a total of 53,500 million Btu per day (approximately 53.5 million standard cubic feet per day) of new firm transportation service to SABIC’s existing facilities. Texas Gas’ firm transportation service for SABIC’s cogeneration (CoGen) plant would allow for the use of natural gas to create a majority of the steam for its existing chemical plant and provide SABIC with direct access to the Texas Gas interstate natural gas transmission system.

The Texas Gas project would consist of:

  • about 30.6 miles of 10-inch-diameter natural gas pipeline lateral;
  • one new M&R station including pig4 receiver;
  • one pig launcher; and
  • one mainline valve.

Texas Gas anticipates that construction of the project would begin in fall 2015 and that it will be placed into service in summer 2016. However, FERC noted that based on current timing, Texas Gas’ anticipated time frame may not begin until the winter of 2016.

Midwest Fertilizer Co. LLC and SABIC were the original customers. Said the March 30 amendment request: “Texas Gas has learned that Midwest Fertilizer Company, LLC did not receive approval from its Board of Directors to commit to the 110,000 MMBtu/d of firm transportation service that it had originally contracted for in the precedent agreement.”

The new pipeline will begin at an interconnection with Texas Gas’ existing Robards Junction facilities in Henderson County, Kentucky, extending approximately 30.6 miles westward and including a crossing of the Ohio River to a proposed interconnection with SABIC’s existing plant and proposed cogen facility located near Mount Vernon in Posey County, Indiana.

The March 30 amendment noted: “SABIC has executed a Precedent Agreement for 53,500 MMBtu/d of firm transportation service to be delivered to its existing plant and the new CoGen facility being constructed that will use natural gas instead of coal to create steam and power for the SABIC thermoplastics 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.