FERC okays gas pipeline to support Invenergy’s Lackawanna power project

The members of the Federal Energy Regulatory Commission on Dec. 30 granted a June 2015 application from Tennessee Gas Pipeline Co. LLC for authorization to construct and operate pipeline looping and related facilities in Susquehanna County, Pa., in order to provide 180,000 dekatherms per day (Dth/d) of west-to-east firm incremental transportation service for a new power plant in Lackawanna County, Pa.

Tennessee proposed this Triad Expansion Project to increase capacity on a portion of its 300 Line in Pennsylvania to provide 180,000 Dth/d of west-to-east firm incremental transportation service for a power plant being built by Lackawanna Energy Center LLC, an affiliate of Invenergy LLC.

Tennessee will transport gas for the Lackawanna plant on the 300 Line from Tennessee’s existing Korban meter receipt point along a 17-mile contract path to its Uniondale meter station, Tennessee’s existing interconnection with UGI Corp.’s local distribution system. UGI will then deliver the gas to the Lackawanna power plant.

Tennessee and Lackawanna executed a binding precedent agreement for 180,000 Dth/d of firm service which will use all of the capacity created by the Triad Expansion Project.

Tennessee plans to construct and operate approximately 7 miles of new 36-inch-diameter pipeline loop immediately west of existing Compressor Station 321 (CS 321) along a portion of the existing 300 Line in Susquehanna County, Pa.

Tennessee estimates the cost of the project to be approximately $87,420,000.

Subsequent to execution of the precedent agreement with Lackawanna ,Tennessee held a binding open season for the Triad Expansion Project in early 2015. Tennessee offered a minimum of 180,000 Dth/d of expansion service from mutually agreeable receipt points near Main Line Valve 320 to Tennessee’s existing interconnection with UGI at the Uniondale meter station, with a proposed inservice date of Nov. 1, 2017. Tennessee received no bids for service in the open season.

As part of the open season Tennessee also solicited offers from existing shippers for turn-back capacity. In response, UGI Penn Natural Gas Inc. offered to permanently relinquish 30,000 Dth/d of firm transportation capacity currently under 15-year contract on a delivery path from Tennessee’s Zone 4 Leg 200 Pool in Mercer County, Pennsylvania, near the Ohio border, to the Uniondale meter which Lackawanna has requested as its delivery point. Tennessee rejected the offered turn-back capacity due to incongruity with the location, term, and price of the proposed Triad Expansion Project.

Invenergy on Dec. 29 had announced that it has completed project financing for the Lackawanna Energy Center, which is currently under construction. The LEC is a 1,485-MW, natural gas-fired, combined-cycle plant. It is expected to begin commercial operations in mid 2018. Equipped with General Electric’s latest H-class gas turbine technology, the LEC will feature the highest-efficiency combustion turbines in their class, said Invenergy.

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.