Eastern Shore Natural Gas Co. filed on Oct. 13 a prior notice request for authorization with the Federal Energy Regulatory Commission to increase the certificated capacity of Eastern Shore’s Receipt Zone 1 (R1) facilities.
Eastern Shore’s R1 receipt zone consists of an eight-mile, 16–inch pipeline and interconnect with Texas Eastern Transmission LP (TETCo) near Honey Brook, Pennsylvania. Eastern Shore received initial approval to construct the TETCo facilities in 2010, and was authorized to increase the capacity of the R1 facilities in January 2014. The TETCo interconnect allows Eastern Shore to offer its shippers upstream supply diversification and allows shippers to take advantage of price differentials among the upstream pipelines connected to Eastern Shore, providing opportunities for securing lowest-cost natural gas.
Since expanding the capability of the TETCo interconnect in early 2014, Eastern Shore said it has continued to receive customer requests for additional firm natural gas transportation service through the R1 facilities. In order to meet customer demand, Eastern Shore proposes to make certain measurement and related improvements (called the “TETCo Capacity Expansion Project”) at the TETCo interconnect, which will allow the R1 certificated capacity to be increased from the current 107,000 Dth/Day to 160,000 Dth/Day.
Eastern Shore conducted an open season during the month of June 2015 soliciting customer interest in obtaining additional firm transportation service in Receipt Zone 1 with receipts at the TETCo interconnect. Shipper interest resulting from the open season combined with the existing customer requests resulted in the open season being oversubscribed. Eastern Shore received indications of customer interest totaling 99,500 Dth/day. Eastern Shore has determined that it can provide a significant portion of this requested service, 53,000 Dth/day, by making the minor measurement and related modifications that are the subject of this prior notice.
Further expansion of the TETCo interconnect and Receipt Zone 1 capacity will require more complex and costly modifications. Eastern Shore said it is evaluating these modifications relative to its customers’ interest and may propose further expansion of the TETCo interconnect and R1 capacity as part of a subsequent system expansion project certificate application.
The total estimated cost of this current expansion project is $1,375,038.
A company contact is: Eric M. Pearson, Senior Manager, Operations Compliance & Engineering, Eastern Shore Natural Gas Co., 1110 Forrest Avenue, Suite 201, Dover, DE 19904, Telephone: (302) 734-6710 ext. 6506, EPearson@esng.com.