A group of interstate pipelines wants to increase deliverability of Arkoma basin gas to serve markets in the U.S. Northeast.
Another 550 MMcfd of gas will become available from eastern Oklahoma and western Arkansas if the Federal Energy Regulatory Commission approves a series of related filings by Ozark Gas Pipeline Corp. and subsidiaries of Tenneco Gas, Columbia Gas System Inc., and Arkla Inc.
Tennessee Gas Pipeline Co., a subsidiary of Tenneco Gas; and Columbia Gulf Transmission Co., a unit of Columbia Gas, are seeking a FERC permit to lay a 550 MMcfd pipeline-the GI line-to move Arkoma gas from Arkla's AC pipeline near Glendale, Ark., to Columbia Gulf's mainline near Inverness, Miss., and Tennessee's system near Isola, Miss. Cost of the 97 mile, 30 in. GI line is estimated at $110.7 million.
Tennessee and Columbia Gulf each would own 250 MMcfd of GI line capacity. Mississippi River Transmission Corp. (MRT), a subsidiary of Arkla, would acquire the other 50 MMcfd of GI capacity in exchange for Columbia Gulf and Tennessee Gas ownership in specified MRT facilities.
To deliver gas to the GI line, Tennessee and Columbia Gulf each would acquire ownership interests and 85 MMcfd capacity in the AC line and 165 MMcfd of capacity in an expanded transmission system of Ozark Gas, Fort Smith, Ark.
OZARK EXPANSION
Under a related application filed last January, Ozark is seeking a FERC permit to become an open access transporter and to increase capacity to 330 MMcfd on its 20 in. mainline running 266 miles from Pittsburgh County, Okla., to near Searcy, Ark., in White County.
Ozark plans to spend about $17 million to add two 10,000 hp mainline compressor stations. Expansion work will not begin until the GI line is laid, in about 2 years, Ozark said. However, pending FERC approval, Ozark hopes to begin offering open access transportation by Oct. 1, 1991.
Ozark plans to connect its mainline with Arkla's Mississippi River Transmission line. Plans call for Arkla to lay a 9 mile stub from MRT to Ozark's pipeline terminus at Searcy.
Ozark's transmission system is operated by Delhi Gas Pipeline Corp., Dallas, a subsidiary of Texas Oil & Gas Corp.
Delhi, Columbia Gulf, Tennessee Gas, and Oneok Inc., Tulsa, each own 25% of the pipeline.
Copyright 1991 Oil & Gas Journal. All Rights Reserved.
