FERC okays Northern Natural project to supply gas to Golden Spread Electric Co-op

The members of the Federal Energy Regulatory Commission on June 16 approved a September 2015 application from Northern Natural Gas Co. for a certificate of public convenience and necessity authorizing it to construct and operate a new compressor station and related facilities near Seminole in Gaines County, Texas.

This is called the Gaines County Crossover Project. Northern’s 14,700-mile pipeline system extends from southwest Texas to the upper peninsula of Michigan.

Northern proposes to construct and operate a new compressor station and related facilities at the “X-shaped” intersection of Northern’s Spraberry to Plains and Kermit to Beaver 30-inch diameter mainlines in Texas. The proposed 18,089 horsepower (hp) compressor station will consist of two gas-fired turbine compressor units – one 11,152 hp unit and one 6,937 hp unit. The compressor station will compress gas from the Spraberry to Plains mainline into the Kermit to Beaver mainline.

The Gaines County Crossover Project will enable Northern to provide 210,000 dekatherms (Dth) per day of additional firm transportation service to delivery points servicing several natural gas-fired power plants. Northern estimates the cost of the project to be $40.7 million.

Northern held an open season from Jan. 26 through Feb. 2, 2015, to solicit interest for firm transportation service and to identify any support for the construction of facilities to expand firm transportation capacity in the southern portion of Northern’s Field Area system. As a result of the open season, Northern executed a precedent agreement with Golden Spread Electric Cooperative for 210,000 Dth per day of firm transportation service for a 14-year term. This represents all of the transportation capacity associated with the project.

Golden Spread currently operates electricity generation facilities near Denver City and Abernathy, Texas.

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.