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National Fuel, Empire announce Marcellus open seasons

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Nov. 18 -- National Fuel Gas Supply Corp. and Empire Pipeline Inc., the operating companies that make up the pipeline and storage segment of National Fuel Gas Co., have begun two open seasons for firm transportation capacity from the Marcellus shale formation in the central and southwestern producing regions of Pennsylvania.

Empire’s open season 008 offers capacity on its Tioga County Extension Phase 2 Project (TCE2), designed to provide about 260 MMcfd incremental firm transportation from producer interconnections in Bradford and Tioga Counties, Pa., as well as from prospective interconnections with the Tennessee Gas Pipeline 300 Line and a proposed Penn Virginia Resources Midstream pipeline in Tioga and Lycoming counties. The additional capacity would access markets at several Empire delivery points, including existing interconnection with TransCanada Pipeline at Chippawa, its planned interconnection with the TGP 200 Line near Rochester, NY, and its existing interconnection with Millennium Pipeline at Corning, NY.

TCE2 project facilities would include two new compressor stations, roughly 25 miles of 24-in. or 30-in. OD high-pressure pipeline, and other enhancements along Empire’s existing system. The new high-pressure pipeline would begin at a new interconnection with the TGP 300 Line or an interconnection with the proposed PVR pipeline, and extend north to Jackson Township, Pa., where it would connect with the 24-in. OD pipeline Empire expects to build in 2011 as part of its previously announced Tioga County Extension Phase 1 Project (TCE1).

TCE1 is designed to provide 350 MMcfd incremental capacity from Jackson Township, Pa., to Empire’s interconnect with TransCanada Pipeline at Chippawa. Empire filed US Federal Energy Regulatory Commission applications for the TCE1 project Aug. 26, and expects to commence service Sept. 1, 2011. Empire has executed precedent agreements with anchor shippers Shell Energy North America (US) LP, and Talisman Energy USA Inc. for TCE1 and the capacity is fully subscribed.

Empire expects TCE2 to enter service as early as Sept. 1, 2013.

National Fuel Gas’ open season 167 offers an additional 45 MMcfd capacity on its previously announced Line N Phase II expansion project. Final facility design made the additional capacity available from receipt points at new and existing producer interconnects along the company’s Line N system in Greene, Washington, and Beaver Counties, Pa., to a delivery point at its proposed interconnection with Texas Eastern Transmission Corp. at Holbrook station in Greene County, Pa.

Line N Phase II facilities would include additional compression at its Buffalo station, along with about 6 miles of pipeline replacement in Washington County, Pa.

The Line N Phase II project would have a total maximum capacity of 195 MMcfd, currently supported by Range Resources Appalachia LLC, which has executed a precedent agreement for 150 MMcfd.

National Fuel expects its fully subscribed Line N Phase I expansion project, designed to provide 160 MMcfd incremental transportation, to enter service Sept. 1, 2011.

Contact Christopher E. Smith at chriss@ogjonline.com.


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