U.S. GAS PIPELINES SCHEDULE EXPANSIONS
Three U.S. gas pipelines companies are seeking Federal Energy Regulatory Commission approval of large gas transportation projects.
In the latest action:
- Florida Gas Transmission Co. (FGTC) plans to expand capacity of its system by as much as 875 MMcfd to serve customers in the Tampa-St. Petersburg area. Final design capacity of the $940 million project depends on the volume of transportation requested in service agreements completed by Dec. 12.
- Texas Eastern Transmission Corp. (Tetco) wants to add compression and loops in 1993-95. The expansion will provide about 260 MMcfd of firm transportation service under an integrated transportation project (ITP) to six customers in the Northeast with 20 year agreements with Tetco or Algonquin Gas Transmission Co. Tetco and Algonquin are subsidiaries of Panhandle Eastern Corp. (PEC), Houston.
- Kern River Gas Transmission Co., under construction and aiming for start-up soon with 700 MMcfd of capacity, plans to expand capacity by 452 MMcfd, mostly by adding 158,900 hp of compression. Kern River said the $308 million project is needed to serve downstream transportation needs of Altamont Gas Transmission Co. shippers selling Canadian gas into California markets.
FGTC EXPANSION
FGTC Pres. William V. Allison said the deadline for completing service agreements for firm transportation capacity was extended from Oct. 29 because of the complexity of customer projects expected to use gas supplied by its expansion.
"Negotiations with existing and potential customers are proceeding well," Allison said. "Except for a few relatively minor modifications, the project has changed surprisingly little since we announced it Sept. 10."
When FGTC completes design of laterals, meter stations, and related facilities, it will provide the information to FERC, he said.
FGTC plans to lay about 800 miles of line, including 160 miles of 30 in. main line, through the western part of the state. The expansion nearly will double system throughput, expected to reach 925 MMcfd by yearend 1991.
FGTC timed filing its application with FERC so it could move ahead with the commission's environmental review process.
"This will put the project on schedule to meet gas market demand in late 1994 or early 1995," he says.
FGTC, a 4,450 mile pipeline system extending from South Texas to south of Miami, is operated by Enron Corp. It is a subsidiary of Citrus Corp., owned jointly by Enron and Sonat Inc.
TETCO PLAN DETAILS
Tetco said the ITP will be a one stop transportation service using all of PEC's interconnected, interstate pipelines: Tetco, Algonquin, Trunkline Gas Co., and Panhandle Eastern Pipe Line Co. (PEPL).
Tetco and Algonquin customers use ITP to buy gas mainly from the U.S. Gulf Coast and Arkoma basin. Trunkline and PEPL will move ITP gas on existing capacity. Trunkline's Lebanon Ohio, lateral is a key link in ITP service, PEC said.
Tetco Pres. George Mazanec said ITP services are needed to meet growing demand for gas in the Northeast resulting from U.S. clean air initiatives.
Tetco plans to add loops at 13 sites and increase system compression. The company expects to complete the $251 million ITP expansion in three phases:
- In 1993, the company will lay about 46 miles of 36 in. loop at sites in Ohio, Pennsylvania, and West Virginia.
- In 1994, about 59 miles of 8 in., 30 in., 36 in., and 42 in. loop in Ohio, Pennsylvania, and New Jersey.
- In 1995, 15-1/2 miles of 36 in. loop in Ohio and Pennsylvania.
KERN RIVER PLAN
Kern River proposes to roll the cost of its planned expansion into its existing rate. The resultant increased throughput will lower the pipeline's transportation rate by 12 cents/Mcf.
The proposed expansion is timed to coincide with Altamont's expected November 1993 start-up. The expanded capacity is fully subscribed by firm transportation agreements with nine shippers.
Kern River is expected to be ready early in 1992 to begin transporting Canadian and Rocky Mountain gas from Opal, Wyo., to Bakersfield, Calif., for use in enhanced oil recovery operations.
Altamont will connect with Kern River near Opal. The 620 mile Altamont line will begin at Wild Horse, Mont., on the U.S.-Canadian border.
Copyright 1991 Oil & Gas Journal. All Rights Reserved.