FERC okays Transco’s Garden State Expansion pipeline capacity project

The members of the Federal Energy Regulatory Commission on April 7 approved a February 2015 application from Transcontinental Gas Pipe Line Co. LLC (Transco) for a certificate of public convenience and necessity authorizing it to construct and operate certain facilities in Burlington and Mercer counties, New Jersey (called the Garden State Expansion Project).      

Transco is a natural gas company engaged in the transportation of natural gas in interstate commerce. Its transmission system extends from Texas, Louisiana, and the offshore Gulf of Mexico area, through Mississippi, Alabama, Georgia, South Carolina, North Carolina, Virginia, Maryland, Pennsylvania, and New Jersey, to its termini in the New York City metropolitan area.

Transco proposes to construct and operate its Garden State Expansion Project to provide 180,000 dekatherms (Dth) per day of incremental firm transportation service, in two phases, from Transco’s Station 210 Zone 6 Pool in Mercer County, New Jersey, to a new delivery point with New Jersey Natural Gas Co. on Transco’s Trenton Woodbury Lateral in Burlington County, New Jersey.

  • Phase 1 will provide 20,000 Dth per day by a target in-service date of Nov. 1, 2016; and
  • Phase 2 will provide an additional 160,000 Dth per day by a target in-service date of August 2017.

In Phase I, Transco proposes to:

  • construct and operate a new meter and regulating station near milepost (MP) 15.2 on Transco’s Trenton Woodbury Lateral in Burlington County (Chesterfield Meter Station);
  • uprate an existing electric motor drive to 25,000 horsepower (hp) and modify the associated compressor unit (Unit 3) at Compressor Station 205 in Mercer County; and
  • construct and operate related appurtenant underground and above ground facilities.

In Phase II, Transco proposes to:

  • construct and operate a new 30,500 hp, electric motor-driven compressor station and associated electrical substation near MP 15.2 on Transco’s Trenton Woodbury Lateral in Burlington County (Compressor Station 203);
  • uprate two existing electric motor drives to 16,000 hp each and rewheel the associated compressor units (Units 1 and 2) at Compressor Station 205 in Mercer County; and
  • construct and operate related appurtenant underground and above ground facilities.   

The estimated cost of the Garden State Expansion Project is approximately $116 million. 

Transco executed a binding precedent agreement with New Jersey Natural Gas for 100% of the incremental firm transportation capacity of the project. The precedent agreement requires New Jersey Natural Gas and Transco to execute a long-term firm transportation service agreement under Rate Schedule FT within 30 days after Transco’s receipt and acceptance of the authorizations requested herein. The Rate Schedule FT agreement between Transco and New Jersey Natural Gas will have a primary term of 15 years.

Following Transco’s execution of the precedent agreement with New Jersey Natural Gas, Transco held an open season from June 12 through July 14, 2014, during which it offered firm transportation service under the proposed project to other potential shippers. Transco states that it did not receive any other requests for firm transportation service. 

As initial recourse rates for project service, Transco proposes to establish an incremental firm daily reservation charge of $0.77804 per Dth in Phase 1, and reduce the charge to $0.37655 per Dth in Phase 2. Transco also proposes to assess its applicable maximum system-wide fuel retention percentage and all other system-wide firm transportation service surcharges. In lieu of the incremental recourse rate, Transco and New Jersey Natural Gas have agreed to a fixed negotiated firm reservation rate.

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.