FERC okays certificate for Texas Eastern gas capacity project

The Federal Energy Regulatory Commission on Dec. 17 approved a Feb. 19 application from Texas Eastern Transmission LP for certificate authorization to construct and operate a new compressor station in Provident City, Lavaca County, Texas, a new compressor unit at an existing compressor station in St. Landry Parish, Louisiana, and modifications to existing facilities in Kentucky, Louisiana, Mississippi, Ohio and Tennessee.

The proposed facilities, collectively known as the Gulf Markets Expansion Project, will create incremental pipeline capacity that will enable Texas Eastern to provide approximately 650,000 dekatherms (Dth) per day of additional firm transportation service on its mainline system. 

Texas Eastern engages primarily in the transmission of natural gas in interstate commerce, subject to the commission’s jurisdiction. Texas Eastern’s transmission system extends from Texas, Louisiana, and the Gulf of Mexico area, through the states of Mississippi, Arkansas, Missouri, Tennessee, Illinois, Indiana, Kentucky, Ohio, Pennsylvania, and New Jersey, to its principal terminus in the New York City metropolitan area.

Texas Eastern proposes to construct and operate the Gulf Markets Project to provide 650,000 Dth per day of new firm natural gas transportation service on its mainline system.  The Gulf Markets Project is designed to increase Texas Eastern’s capability to flow gas in a southerly direction from Market Zone 2 to Market Zone 1 and Access Zone WLA, and in the traditional northerly direction from Access Zone STX to Access Zone WLA. The project will include construction of:

  • a new 5,280 horsepower (hp) compressor station at Provident City in Lavaca County, Texas;
  • the installation of a new 12,500 hp compressor unit and other facility modifications at the existing Opelousas Compressor Station in St. Landry Parish, Louisiana;
  • facility modifications at five other existing compressor stations along the project path; and
  • modifications of two existing metering and regulating (M&R) stations and five existing launchers.

Texas Eastern estimates its proposed project will cost approximately $149 million.

Texas Eastern held a non-binding open season in 2013 for firm service using the incremental mainline capacity that will be created by the project. Texas Eastern held a supplemental open season (limited to the shippers that participated in the first open season) in early 2014 to solicit bids for the remaining project capacity from Access Zone STX to Access Zone WLA. Texas Eastern executed binding precedent agreements with five shippers for a total of 650,000 Dth per day of additional firm service.

Texas Eastern proposes two phases of construction. The first phase of the project is planned to be placed in service by Nov. 1, 2016. The second phase of the project is planned to be completed by Aug. 1, 2017.

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.