FERC works on enviro review of Texas Eastern gas lateral in New Jersey

The Federal Energy Regulatory Commission issued an Oct. 27 notice about its environmental review schedule for a June 29 application from Texas Eastern Transmission LP for a Certificate of Public Convenience and Necessity for the Bayway Lateral Project.

The project would transport an incremental volume of approximately 300,000 dekatherms per day from Texas Eastern’s existing Line 38 to serve new commercial customers, which are the Linden Cogen Power Plant and the Phillips 66 Bayway Refinery.

On July 14, FERC issued its notice of application for the project. Among other things, that notice alerted agencies issuing federal authorizations of the requirement to complete all necessary reviews and to reach a final decision on a request for a federal authorization within 90 days of the date of issuance of the commission staff’s Environmental Assessment (EA) for the project. FERC plans to issue the EA on Nov. 23, with a 90-day Federal Authorization Decision Deadline of Feb. 21, 2017.

Texas Eastern proposes to construct, operate, and maintain new pipeline and aboveground facilities in the City of Linden, Union County, New Jersey. The project would consist of the installation of approximately 2,300 linear feet of 24-inch-diameter pipeline connecting Texas Eastern’s existing Line 38 to the Linden Cogen Power Plant and Phillips 66 Bayway Refinery. The project also includes construction of one new fenced metering and regulating station on the Phillips 66-owned property adjacent to the Linden Cogen Power Plant.

Cogen Technologies Linden Venture LP (CTLV) and Phillips 66 Co. on Aug. 4 jointly asked FERC to be allowed to intervene in this case in support of the Texas Eastern project.

CTLV owns five of the six units at a natural gas-fired cogeneration facility in Linden, New Jersey (the “Linden Facility”) located on the site of the Bayway Refinery owned by Phillips 66. The majority of the output of CTLV’s five units is sold to Consolidated Edison Company of New York (Con Edison) under a long-term power purchase agreement that expires April 30, 2017, while the remaining output is sold into the organized markets administered by the New York Independent System Operator (NYISO) or pursuant to bilateral agreements.

The majority of the output of the sixth generating unit at the Linden Facility, which is owned by East Coast Power Linden Holding LLC (a CTLV affiliate), is sold to Phillips 66 for use by its Bayway Refinery under a long-term requirements agreement that expires in 2032. Available excess energy and capacity from Linden 6 is sold in the organized markets administered by PJM Interconnection or pursuant to bilateral arrangements.

CTLV receives natural gas service from two local distribution companies, Public Service Electric and Gas and Elizabethtown Gas Co., pursuant to a three-party, long-term agreement approved by the New Jersey Board of Public Utilities. This CTLV Gas Service Agreement, which became effective in 1990, is set to expire in the spring of 2017.

Phillips 66’s Bayway Refinery processes mainly light, low-sulfur crude oil from imported and domestic sources. Similar to CTLV, Phillips 66 also currently receives natural gas service from Public Service Electric and Gas pursuant to a long-term agreement entered into in 2001. This Phillips 66 Gas Service Agreement expires in the spring of 2017.

The companies noted that the Bayway Lateral project is fully subscribed pursuant to precedent agreements executed by CTLV and Phillips 66. Although the precedent agreements provide a target in-service date of Jan. 1, 2018, the parties hope for an in-service date as early as Nov. 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.