P. 7 ~ Continued - OGJ Newsletter

Nov. 21, 2011

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ConocoPhillips sold the Seaway Products Pipeline Co. to DCP Midstream in June. DCP will convert the line to NGL service (OGJ Online, June 13, 2011).

FERC reports on Marcellus shale projects

Four projects to transport Marcellus shale gas went into service during October as two more were announced, the US Federal Energy Regulatory Commission said on Nov. 14 as its energy projects office released its latest monthly update.

It said National Fuel Gas Co.'s pipeline and storage division placed its Line N replacement and Lines R and I expansion projects into service on its Line N system in western Pennsylvania. The projects will provide 150 MMcfd of firm Marcellus shale gas transportation to Texas Eastern Transmission LP's pipeline in Greene County, Pa., FERC said.

Tennessee Gas Pipeline Co., meanwhile, placed its Line 300 expansion project into service, FERC said. The El Paso Corp. subsidiary's system will provide 360 MMcfd of firm transportation, include Marcellus shale gas, with increased reliability.

FERC said NFGC and TGP received approval to construct and operate their Northern Access and Station 230C projects, which will provide 320 MMcfd of transportation capacity for Marcellus shale gas in Pennsylvania and New York.

The report also mentioned two projects outside the US Northeast shale gas region. It said Northern Border Pipeline Co. placed into service its nearly 9-mile Princeton Lateral project in Illinois into service to provide 120 MMcfd of firm gas for Central Illinois Light Co.'s plant near Princeton, Ill. It also said El Paso Natural Gas Co. applied to construct and operate a project to increase capacity of Wilcox Lateral in Cochise County, Ariz., by 185 MMcfd.

Pembina to expand Montney shale line capacity

Pembina Pipeline Corp. will install five new pump stations and upgrade five existing pump stations to expand NGL throughput capacity on its Peace and Northern Pipelines (together the Northern NGL System) by 55,000 b/d to accommodate increased field liquids extraction by producers in the Western Canadian Sedimentary Basin.

Pembina expects to bring 20,000 b/d of the expansion into service by yearend 2012 and the remaining 35,000 b/d by yearend 2013, subject to commercial arrangements and regulatory approvals.

The WCSB includes the Deep basin, Montney, Cardium, and Duvernay shales. The Northern NGL System's current capacity is 115,000 b/d with average volumes of 88,000 b/d. Pembina expects this to rise to 100,000 b/d by yearend due to commissioning of its Edson pipeline expansion and the Musreau Deep Cut facility.

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