IN THE NEWS .........
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Algonquin Gas Transmission, LLC has filed a request with the FERC authorization to replace a segment of 24-inch-diameter pipeline at a crossing of the Mystic River with an offset located adjacent to the existing pipeline at the confluence of the Mystic River and Alewife Brook (Mystic River Project). Specifically, Algonquin proposes to install a new, approximate 1,300-foot section of 24-inch-diameter pipeline on its J-1 System underneath the channel of the Mystic River and Alewife Brook in Somerville, Medford, and Arlington, Massachusetts.
Atlantic Coast Pipeline, LLCs and Dominion Transmission, Inc. have received a revised schedule from the FERC for the completion of the Environmental Impact Statement for the proposed Atlantic Coast Pipeline and the DTI Supply Header Project. The first notice of schedule, issued on August 12, 2016, identified a final EIS date of June 30, 2017. However, in response to comments on the Draft Environmental Impact Statement (which had a comment closing date of April 6, 2017), FERC sent an environmental information request to Atlantic and DTI in April 2017, and only recently received the information necessary for us to complete our environmental review. Issuance of the Final Environmental Impact Statement is now expected on July 21, 2017 with a final project decision slated for October 19, 2017. The proposed Atlantic Coast Pipeline includes approximately 564.1 miles of various diameter pipeline; three greenfield compressor stations totaling 117,545 horsepower (HP) of compression; and various appurtenant and auxiliary facilities designed to transport up to approximately 1.5 million dekatherms per day (MMDth/d) of natural gas. Facilities to be constructed are located in Harrison, Lewis, Upshur, Randolph, and Pocahontas Counties, West Virginia; Highland, Augusta, Nelson, Buckingham, Cumberland, Prince Edward, Nottoway, Dinwiddie, Brunswick, Greensville and Southampton Counties and the Cities of Suffolk and Chesapeake, Virginia; and Northampton, Halifax, Nash, Wilson, Johnston, Sampson, Cumberland and Robeson Counties, North Carolina.
The FERC is preparing an Environmental Impact Statement that will discuss the environmental impacts of the Midcontinent Supply Header Interstate Pipeline Project (MIDSHIP Project) involving construction and operation of facilities by Midship Pipeline Company, LLC in Kingfisher, Canadian, Grady, Garvin, Stephens, Carter, Johnston, and Bryan Counties, Oklahoma and leased capacity on existing pipeline infrastructure in Oklahoma, Texas, and Louisiana. The project is proposed by Cheniere Energy Inc. The Midship Pipeline would draw natural gas out of production areas in the SCOOP and STACK plays in Oklahoma and into U.S. Gulf Coast markets. Specifically the project includes construction and operation of about 218.4 miles of mainline and lateral natural gas pipeline and appurtenant facilities from Okarche to Bennington, Oklahoma, and to lease approximately 353.0 miles of existing pipeline capacity. Zone 1 of the MIDSHIP Project would consist of the following facilities in Oklahoma: approximately 198.1 miles of new 36-inch-diameter mainline pipeline in Kingfisher, Canadian, Grady, Garvin, Stephens, Carter, Johnston, and Bryan Counties; approximately 20.3 miles of new 24-inch-diameter lateral pipeline (referred to as the “Chisholm Lateral”) in Kingfisher County; three new compressor stations, totaling 124,710 horsepower, in Canadian, Garvin, and Bryan Counties; nine receipt and two delivery meter stations in Kingfisher, Canadian, Grady, Garvin, and Bryan Counties; and other appurtenant facilities. Zone 2 of the MIDSHIP Project would involve 353.0 miles of existing pipeline capacity leased from the Midcontinent Express Pipeline LLC, and/or Gulf Crossing Pipeline Company LLC pipelines, operated by Kinder Morgan and Boardwalk Pipeline. The pipeline itself is expected to enter service in early 2019.
FERC has issued a favorable Environmental Assessment for the WB XPress Project, proposed by Columbia Gas Transmission, LLC. Columbia is requesting authorization to perform the following: installation, construction, and operation of about 29.3 miles of various diameter pipeline; modifications to seven existing compressor stations; construction and operation of two new compressor stations; uprates and restoration of the maximum allowable operating pressure (MAOP) on various segments of the existing WB and VB natural gas transmission pipeline systems; and installation of various appurtenant and auxiliary facilities, all located in either Braxton, Clay, Grant, Hardy, Kanawha, Pendleton, Randolph, and Upshur Counties, West Virginia, or Clark, Fairfax, Fauquier, Loudoun, Shenandoah, or Warren Counties, Virginia.
Columbia Gas Transmission’s awaits a Final Environmental Impact Statement from the FERC for its proposed Mountaineer XPress Project. The project would include about 164.3 miles of new 36-inch natural gas pipeline from Marshall County to Cabell County; about 5.9 miles of new 24-inch natural gas pipeline in Doddridge County; three new compressor stations in Doddridge, Calhoun, and Jackson Counties; two new regulating stations in Ripley and Cabell Counties; about 296 feet of new, 10-inch natural gas pipeline at the Ripley Regulator Station to tie Columbia Gas’ existing X59M1 pipeline into the MXP-100 pipeline in Jackson County; an approximately 0.4-mile-long replacement segment of 30-inch natural gas pipeline in Cabell County; and upgrades to one existing compressor station (Wayne County) and two compressor stations (Marshall and Kanawha Counties).
A formal application for the DTE Midstreams Appalachia, LLC’s Birdsboro Pipeline Project has been filed with the FERC. The project will be in Berks County, Pennsylvania. DTE Midstream proposes 13.19 miles of 12-inch diameter pipeline; installation of a new pig receiver at the Birdsboro Facility; installation of one new meter site adjacent to the Texas Eastern right-of-way, one new pig launcher at the TexasEastern interconnect; two new taps on the Texas Eastern pipeline; and four valves along the pipeline route spaced to meet the requirements of the US Department of Transportation’s Pipeline and Hazardous Materials Safety Administration. DTE Midstream requests Commission issue the requested authorizations by December 15, 2017, in order to meet the June 30, 2018, proposed in-service date. The total cost of the Project is estimated to be approximately $47,276,982.
Driftwood LNG, LLC (DWLNG) has filed an application seeking authorization from the FERC for the proposed Driftwood LNG Project located in Calcasieu Parish, Louisiana. DWLNG is requesting authorization to construct and operate liquefied natural gas (LNG) export facilities, including five LNG plants, three LNG storage tanks, marine facilities and associated infrastructure and support facilities. In total, the facility will produce up to 26 million tonnes per annum (MTPA) of natural gas. Also, Driftwood Pipeline, LLC filed an application seeking authority to construct and operate, an approximately 96-mile interstate natural gas pipeline, compression and related facilities. The pipeline will be capable of transporting up to 4 Bcf/d of natural gas to the facility. If approved, construction start is slated for 2018.
Eastern Shore Natural Gas Company has received a favorable Environmental Assessment for its 2017 Expansion Project. The project would involve construction of approximately 40 miles of pipeline and appurtenant facilities located in Pennsylvania, Maryland, and Delaware to provide 61,162 dekatherms per day of additional firm transportation service. A final FERC project decision is expected on August 10, 2017.
Enterprise Products Partners L.P. announced the construction of a new 571-mile pipeline to transport growing volumes of natural gas liquids (“NGL”) from the Permian Basin to Enterprise’s NGL fractionation and storage complex in Mont Belvieu, Texas. The Shin Oak NGL Pipeline will originate at Enterprise’s Hobbs NGL fractionation and storage facility in Gaines County, Texas. The 24-inch diameter pipeline will have an initial design capacity of 250,000 barrels per day (“BPD”), expandable to 600,000 BPD. This project is supported by long-term customer commitments and is expected to be in service in the second quarter of 2019. In addition to mixed NGL supplies aggregated at the Hobbs facility, the Shin Oak pipeline will provide takeaway capacity for mixed NGLs extracted at natural gas processing plants in the Permian region, including two Enterprise facilities that began service in 2016 and the Orla I plant that is scheduled to begin operations in the second quarter of 2018. In tandem with Enterprise’s existing NGL pipelines, this new pipeline will also increase the company’s capacity to transport purity NGL products from Hobbs to Mont Belvieu. Enterprise’s Mont Belvieu NGL complex is the largest of its kind in the world, offering customers access to approximately 130 million barrels of underground storage capacity, and 670,000 BPD of NGL fractionation capability. Enterprise is building a ninth fractionator at Mont Belvieu that will increase NGL fractionation capacity by 85,000 BPD following its expected completion in the second quarter of 2018. Mont Belvieu is pipeline-connected to the expanding U.S. petrochemical industry on the Gulf Coast, as well as Enterprise’s industry-leading LPG and ethane deepwater marine export terminals on the Houston Ship Channel. “The Permian Basin is currently the hottest play in North America and is expected to continue its strong growth for years to come,” said A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner. “The Shin Oak pipeline project is part of Enterprise’s larger plans in the Permian to leverage our integrated midstream assets to link supplies of cost-advantaged U.S. hydrocarbons to the largest domestic and global NGL markets. This additional pipeline takeaway capacity to Mont Belvieu will provide Permian producers the flow assurance they need to continue the unfettered development of their reserves with confidence.”
Enterprise Products Partners L.P. announced that the company has received customer commitments supporting two expansion projects that will further develop the partnership’s ethylene infrastructure. Enterprise is repurposing a large, high-capacity ethylene storage well at its Mont Belvieu, Texas complex. Following completion of the project, which is expected as early as the third quarter of 2018, the 5.3 million barrel cavern will be able to inject/withdraw ethylene at a rate of 2,000 barrels per hour (“BPH”), expandable to 4,000 BPH. There are seven third party ethylene pipelines within two miles of the ethylene well, providing significant connectivity opportunities into the high-capacity system. Further supporting its ethylene capabilities, Enterprise is building a new 24-mile, 12-inch diameter ethylene pipeline from Mont Belvieu to Bayport, Texas with the potential to connect both producing and consuming sites south of the Houston Ship Channel to Mont Belvieu. The ethylene pipeline will be routed through Enterprise’s ethane export terminal at Morgan’s Point, which provides the partnership future flexibility should it develop ethylene export capabilities at the Morgan’s Point marine terminal. “As U.S. ethylene production capacity expands over the next three years, access to reliable logistics services will be needed, and Enterprise is ideally positioned to fill the gap,” said R.B. Herrscher, senior vice president, Petrochemical for Enterprise’s general partner. “Enterprise has been operating ethylene storage facilities and pipelines for more than 20 years. These growth capital projects will expand our ethylene system to meet the growing needs of the petrochemical industry. These new storage and transportation assets will also complement our existing capabilities, giving us the foundation for extending our ethylene value chain even further.”
Grieve Pipeline, LLC, a subsidiary of Elk Petroleum Inc., announced a binding Open Season that solicits long-term commitments from shippers for firm transportation capacity on a crude oil pipeline that interconnects with the Platte Pipeline Station in Wyoming. The pipeline’s main line consists of 32.44 miles of 8-inch pipe, which begins at Grieve Station, the receipt point for the Grieve Field oil production, and terminates at Spectra Energy Partners, LP’s Platte Station in Mountain View, Wyoming. Platte Station is a hub located to the west of Casper where crude can be directed to in-state refining or transferred to interstate pipelines or rail for delivery outside Wyoming. The pipeline will have a capacity of approximately 12,000 barrels per day. Grieve Pipeline is conducting the binding Open Season to obtain long-term volume commitments for firm transportation capacity on the Pipeline. The Open Season provides an opportunity for interested shippers to acquire long-term firm capacity as a Committed Firm Shipper, under a dedicated acreage commitment. The pipeline is expected to commence full commercial operations by January 1, 2018.
Howard Midstream Energy Partners, LLC announced that its subsidiary, GT Pipeline, LLC, has launched a binding open season to secure new shipper commitments for its Sabine Bayou Line, a new pipeline system near Port Arthur, Texas. The Open Season commenced April 6, 2017, at 8 a.m. CDT and will end at 5 p.m. CDT on May 9, 2017. The approximately 6-mile Sabine Bayou Line is a common carrier, bidirectional pipeline system that will transport regular gasoline, premium gasoline, and gasoline blend stocks to and from origin and destination points at terminal facilities in the West Port Arthur area. The system will provide transportation services between the following origin and destination points: between the West Port Arthur Tank Farm (WPATF) and the GT Logistics Main Tank Farm (GT Main); between the GT Main and the GT Logistics Shoreside Tank Farm (GT Shore). The Pipeline System will be designed for a peak flow rate of 7,500 barrels per hour. The section flowing between WPATF and GT Main will be approximately 2.45 miles of 16-inch pipe, with a maximum daily capacity of 128,000 barrels. The section flowing between GT Main and GT Shore will be approximately 4.2 miles of 20-inch pipe with a maximum daily capacity of 180,000 barrels.
Jordan Cove Energy Project, L.P. and Pacific Connector Gas Pipeline, LP has filed a pre-filing review request with the FERC for their proposed LNG and Terminal Pipeline. Upon completion of the pre-filing review process, applicants will file applications with the Commission for authorization to construct the LNG Terminal and Pipeline. The project is designed to create a new LNG export point on the Oregon coast to serve overseas markets particularly around the Pacific Rim. The LNG Terminal would be capable of receiving natural gas, processing the gas, liquefying the gas into LNG, storing the LNG, and loading the LNG onto vessels at its marine dock. The proposed liquefaction facility would be capable of producing up to 7.8 million metric tons per annum of LNG. PCGP proposes to construct and operate a new, approximately 233-mile-long, 36-inch natural gas transmission pipeline crossing through Klamath, Jackson, Douglas, and Coos Counties, Oregon. The pipeline would be designed to transport 1,200,000 dekatherms per day of natural gas to the LNG Terminal from interconnections with the existing Ruby Pipeline LLC and Gas Transmission Northwest LLC systems near Malin, Oregon. If approved and the project proceeds, construction is slated for the 2nd quarter of 2019 with an in-service date projected of 2024.
Kinder Morgan Texas Pipeline LLC, a subsidiary of Kinder Morgan, Inc., and DCP Midstream, LP announced they have signed a letter of intent for DCP to participate in the development of the proposed Gulf Coast Express Pipeline Project, which will provide an outlet for increased natural gas production from the Permian Basin to growing markets along the Texas Gulf Coast. The project is designed to transport up to 1,700,000 dekatherms per day (Dth/d) of natural gas through approximately 430 miles of 42-inch pipeline from the Waha, Texas area to Agua Dulce, Texas. The pipeline is expected to be in service in the second half of 2019, subject to shipper commitments. A non-binding open season for firm natural gas transportation is currently in process. It is anticipated that DCP will be a partner and shipper on the proposed pipeline. KMI will build and operate the pipeline. DCP is the largest natural gas liquids producer and natural gas processor in the U.S. and operates approximately 1.3 billion cubic feet per day (Bcf/d) of processing capacity in the targeted Permian supply area. DCP also operates Sand Hills, a natural gas liquids pipeline extending from the Permian area to the premier Mont Belvieu market. Sand Hills pipeline is currently being expanded from 280,000 barrels per day (Bbls/d) to 365,000 Bbls/d. It is anticipated that natural gas supply will be sourced into the project from multiple locations, including existing receipt points along KMI’s KMTP and El Paso Natural Gas pipeline systems in the Permian Basin, a proposed interconnection with the Trans-Pecos Pipeline, and additional interconnections to both intrastate and interstate pipeline systems in the Waha area. Deliveries of natural gas into the Agua Dulce area will include points into KMTP’s existing Gulf Coast network, KMI-owned intrastate affiliates (KM Tejas and KM Border pipelines), the Valley Crossing pipeline, the NET Mexico header, and multiple other intrastate and interstate natural gas pipelines.
The staff of the Federal Energy Regulatory Commission has prepared an Environmental Assessment for the Millennium Pipeline Company, LLC’s Eastern System Upgrade Project. The proposed project facilities include the construction, modification, and operation of the following facilities in New York: approximately 7.8 miles of 30- and 36-inch-diameter pipeline loop (Huguenot Loop) in Orange County; a new compressor station in Sullivan County; additional compression at the Hancock Compressor Station in Delaware County; modifications at the Westtown Meter Station and Wagoner Interconnect in Orange County; modifications at the Ramapo Meter Station in Rockland County; and other appurtenant facilities. The project would provide approximately 223,000 dekatherms per day of firm transportation service from Millennium’s existing Corning Compressor Station to an interconnect with Algonquin Gas Transmission, LLC in Ramapo, New York.
NAmerico Partners LP is proposing a multibillion-dollar pipeline to carry natural gas from fast-growing fields in West Texas to the Gulf Coast. The pipeline, one of at least three being considered to ease a looming gas glut in the Permian producing region, would link to existing lines, including those that export gas to Mexico and to a Cheniere Energy Inc. liquefied natural gas export facility under construction. The pipeline would be the first major project by NAmerico Partners, founded two years ago in Houston. The company is backed by private equity fund Cresta Energy LP, whose management includes former executives from Regency Energy Partners LP, a large energy infrastructure company that was bought by Energy Transfer Partners (ETP.N) in 2015. A spokesperson from NAmerico stated that discussions with prospective shippers were at an advanced stage, and the pipeline would begin operations in 2019 if enough of them committed to supplying gas. NAmerico's 468-mile (753-km) pipeline, named the Pecos Trail Pipeline, would transport some 1.85 billion cubic feet per day of natural gas to the major Gulf Coast refining and petrochemical hub in Corpus Christi. Kinder Morgan, which operates the largest natural gas pipeline network in North America, also recently outlined a plan to build a 430-mile pipeline traveling a similar route. It would be able to move 1.7 bcf per day of gas. Enterprise Products Partners, another large pipeline operator, has said it may build a gas line to Corpus Christi, Texas, from the Permian. Kinder Morgan has also said its pipeline would begin operations in 2019 if enough shippers commit. Analysts said the potential for new supplies could allow multiple projects to proceed. The projects are being planned as big producers including Exxon Mobil, Apache Corp. and Chevron Corp. are expected to pour billions of dollars into drilling in the Permian, a vast shale play in West Texas known for its low production costs and massive reserves.
Northern Natural Gas Company has filed an application with the FERC seeking authority to construct, own, and operate a total of 13.8 miles of 20-inch-diameter pipeline loop in two non-contiguous segments and appurtenant facilities in Boone and Polk Counties, Iowa, and abandon two short segments of pipeline in Polk County, Iowa (Des Moines B-line Loop Project). The estimated cost of the project is $32.5 million.
Northwest Pipeline has an application before the FERC seeking approval for the proposed Northfork Nooksack Line Lowering Project in Whatcom County, Washington. Northwest proposes to remove, replace, and lower about 1,700 feet of 30-inch pipeline in the north floodplain of the North Fork Nooksack River. The project also includes removal of about 1,550 feet of previously abandoned in place 26-inch pipeline that will become exposed during the replacement of the 30-inch pipeline.
The staff of the FERC will prepare an Environmental Assessment that will discuss the environmental impacts of the 2018 Expansion Project involving construction and operation of facilities by Paiute Pipeline Company in Douglas and Lyon Counties and Carson City, Nevada. Paiute plans to construct approximately 8.4 miles of pipeline to upsize or loop four sections along its Carson and South Tahoe Laterals in Douglas and Lyon Counties and Carson City, Nevada. The project would provide 4,604 dekatherms per day of new natural gas transportation capacity to meet growing demands in the above mentioned areas and in El Dorado County, California. The project would consist of: construction of 0.34 miles of new 12-inch pipeline paralleling Paiute’s existing South Tahoe Lateral pipeline (Segment 1); replacement of 1.58 miles of existing 8-inch Carson Lateral Loop pipeline with 12-inch pipeline (Segment 2); replacement of 2.34 miles of existing 10-inch pipeline along Paiute’s existing Carson Lateral pipeline with 20-inch pipeline (Segment 3); and construction of 4.17 miles of new 20-inch pipeline loop paralleling Paiute’s existing Carson Lateral pipeline (Segment 4). There are no aboveground facilities planned for the project. Exxon and Saudi Basic Industries Corp 2010.SE, an arm of Saudi Aramco, the state-owned energy company, also have proposed building a multibillion-dollar chemical and plastics plant outside of Corpus Christi. That plant would use natural gas as a raw material.
PennEast Pipeline Company LLC applauded the FERC issuance of a Final Environmental Impact Statement (EIS), validating after nearly three years of scientific review and input from numerous stakeholders that the approximately 120-mile underground natural gas pipeline can be built with little impact on the environment. The Final EIS is the last major federal regulatory hurdle for PennEast Pipeline prior to an anticipated favorable order from FERC Commissioners that would result in approval of the project. The Order would award PennEast a Certificate of Public Convenience and Necessity and is expected this summer. With the Final EIS, two government agencies now have affirmed that PennEast Pipeline’s construction and ongoing operations will not harm the environment, including waterways. The second validation is from the Pennsylvania Department of Environmental Protection, which issued in February a Water Quality Certification as required by section 401 of the Federal Clean Water Act. The 120-mile Project is more than 90 percent subscribed under long-term contracts with local gas utilities, power generators and other energy customers. Local customers will benefit from the delivery of clean, American energy that is slated to be approximately 30 percent less expensive than natural gas supplies from the Gulf of Mexico, which have traditionally fueled the northeast. A study by Concentric Energy Advisors found that due to pipeline constraints in the region, consumers would have saved nearly one billion dollars during the winter of 2013-2014 had PennEast been in service. Prices during that winter spiked to more than 70 times that of non-peak periods.
Phillips 66 announced an open season to secure binding commitments from prospective shippers for the Reeves-Odessa Origination (Rodeo) Project. As proposed, the Rodeo Project will include a pipeline system for crude oil transportation for producers and other shippers in the Delaware Basin, with origination stations in Reeves, Loving, and Winkler counties in Texas, as well as at Odessa, Texas. The pipeline system will include destination options at: Wink, Texas; the Phillips 66 Partner’s Odessa station; a new terminal to be built near Odessa as part of the Rodeo Project; and at Midland, Texas. The Rodeo Project will have an anticipated initial throughput capacity of up to 130,000 barrels per day (BPD), with an ultimate potential throughput capacity of up to approximately 450,000 BPD, depending on shipper commitments in the open season. The pipeline system is expected to be placed in service in the second half of 2018. The open season terms and conditions include options for shippers to obtain committed shipper status through either an acreage dedication or a transportation and deficiency commitment. The open season commenced at 8 a.m. CDT on March 24, 2017.
Port Arthur Pipeline, LLC, a subsidiary of Sempra LNG & Midstream, is proposing to develop a natural gas pipeline in connection with the proposed development of the Port Arthur Liquefaction Project by Port Arthur LNG, LLC, and PALNG Common Facilities in Jefferson County, Texas. The proposed Port Arthur Pipeline Project would consist of two segments oriented north and south of the proposed liquefaction project. The 27.6-mile northern portion of the proposed pipeline project would extend from Vidor in Orange County, TX to the proposed liquefaction project, with the majority of the proposed pipeline co-located with existing energy infrastructure rights-of-way. The approximately 7-mile southern portion of the proposed Pipeline Project would originate in Cameron Parish, Louisiana on the east bank of Sabine Lake and terminate at the Port Arthur Liquefaction Project. The proposed pipeline project would interconnect the Port Arthur Liquefaction Project to various intra- and interstate pipelines, providing access to a number of major U.S. natural gas supply basins. An FERC application was submitted on November 29, 2016 and Port Arthur Pipeline, LLC anticipates FERC authorization by May 2018. Construction is expected to begin in the third quarter of 2021, with commercial operations expected to begin in third quarter of 2022.
Texas Gas Transmission, LLC has filed a request with the FERC seeking authority to abandon in place approximately 4.4 miles and abandon by removal 2.4 miles of 8-inch pipeline designated as the Calliou Bay – Dog Lake (CBD) Pipeline, abandon in place approximately 10.1 miles and abandon by removal 1.7 miles of 10-inch pipeline designated as the Deep Saline – Peltex (DST) Pipeline, and abandon by removal two platforms including associated boat landings, tube turns, including risers, meter facilities, associated piping, and other auxiliary appurtenances in Terrebonne Parish, Louisiana.
Tall Oak Midstream II, LLC and its affiliates and subsidiaries recently concluded a non-binding open season for its TOM Midcon Transport residue gas pipeline project. The non-binding open season solicited commitments for firm transportation capacity from Tall Oak’s Carmen Plant in Alfalfa County, Oklahoma, to deliveries at the Canadian-Blackwell CDP on Southern Star Central Gas Pipeline, Inc. The Carmen Plant is currently connected to Panhandle Eastern Pipe Line Company and ONEOK Gas Transportation, LLC for residue gas deliveries. Tall Oak’s customers have requested additional residue gas takeaway capacity and market flexibility through a proposed interconnect with Southern Star Central Gas Pipeline. The preliminary scope of the project consists of approximately 8 miles of 12-inch or 16-inch pipeline to the point of interconnect. Following the open season, Tall Oak will refine the preliminary scope of the project with a project design that is capable of accommodating the level of shipper nominations received in this open season.
Williams Partners L.P. announced that Transco has filed an application with the Federal Energy Regulatory Commission (FERC) seeking authorization for its Northeast Supply Enhancement project, which would create 400,000 dekatherms per day of incremental firm transportation capacity to markets in the northeastern United States for the 2019/2020 winter heating season. Transco, the nation’s largest-volume and fastest-growing interstate natural gas pipeline system, is a wholly owned subsidiary of Williams Partners L.P., of which Williams owns approximately 74 percent. Transco has executed precedent agreements with subsidiaries of National Grid – the largest distributor of natural gas in the northeastern U.S. – for firm transportation service under the project. Once complete, the project will help meet the growing natural gas demand in the Northeast, including the 1.8 million customers served by National Grid in Brooklyn, Queens, Staten Island and Long Island. Subject to approval by the Federal Energy Regulatory Commission, the Northeast Supply Enhancement project will consist of approximately 10 miles of 42-inch pipeline looping facilities, three miles of onshore 26-inch looping facilities, 23 miles of offshore 26-inch looping facilities, the addition of 21,902 horsepower at an existing compressor station; a new 32,000 horsepower compressor station; and related appurtenant facilities. The certificate application reflects an expected capital cost of $926.5 million and a target in-service date of Dec. 1, 2019.
CANADA
Canada’s Minister of Natural Resources, the Honorable Jim Carr, announced the Government of Canada’s decision to approve NOVA Gas Transmission Ltd.’s (NGTL) Towerbirch Expansion Project subject to 24 binding conditions. The $439-million project will involve the construction of two new pipeline sections totalling approximately 87 kilometers (54 miles) along with associated facilities in northwest Alberta and northeast British Columbia. The Towerbirch Expansion Project will create up to 750 jobs during construction, address the need for increased natural gas transmission capacity along the existing NGTL system and support economic growth. Approximately 82 percent of the project will parallel existing rights-of-way or existing disturbances, and 89 percent will be located on private land.
TransCanada Corporation has filed a variance application with the National Energy Board to proceed with construction of the North Montney Mainline (NMML) Project in northeast British Columbia (B.C.). TransCanada has previously been granted the required primary federal and provincial approvals to construct NMML, subject to conditions that included the requirement for a positive final investment decision on the proposed Pacific Northwest LNG (PNW) Project. The requested variance would allow TransCanada to move forward with construction of the majority of the NMML Project, at an estimated capital cost of approximately $1.4 billion, prior to a final investment decision on the PNW LNG project. In support of the variance for the NMML Project, TransCanada has secured new 20-year commercial contracts with 11 shippers for approximately 1.5 Bcf/d of firm service. Located in the Peace River Regional District, the project will be approximately 301 kilometers (187 miles) of pipeline and include associated metering facilities, valve sites, and compression facilities. The Aitken Creek section will be approximately 182 km (113 miles) of 42-inch pipeline. The south end will connect with the northern end of the existing Groundbirch Mainline (Saturn Section), located about 35 km (22 miles) southwest of Fort St. John. The north end will be about 100 km (62 miles) northwest of Fort St. John. The Kahta section will be approximately 119 km (74 miles) of 42-inch pipeline connecting to the north end of the Aitken Creek section and ending at a point about 180 km (112 miles) northwest of Fort St. John. "This project adds significant pipeline capacity that connects new gas supplies from the prolific Montney basin to the NGTL System and will provide access to markets across North America," said Karl Johannson, TransCanada's executive vice president and president, natural gas pipelines. Subject to regulatory approvals, TransCanada plans to begin construction in the first half of 2018, with facilities being phased into service over a two-year period, beginning in April 2019.