October 2021, Vol. 248, No. 10


Spotlight on Natural Gas Expansion

TC Energy’s Projects Should Expand Gulf Coast Access 

(PGJ) – TC Energy is progressing with pipeline-related projects in Louisiana that should help deliver more natural gas to high-demand markets along the Gulf Coast and beyond. 

The proposed Alberta Xpress (AXP) and in-progress Grand Chenier Xpress (GCXP) projects should enhance the ANR Pipeline system to help broaden the reach of low-cost, domestically produced natural gas to high and rising demand markets, according to TC Energy. The system transports natural gas from Texas, Oklahoma and Louisiana to Wisconsin, Michigan, Illinois and Ohio. 

GCXP is adding a new compressor station in Jefferson Davis Parish, modifying the Grand Chenier and Eunice Compressor Stations in Cameron and Acadia Parishes, and installing new pipeline facilities (mainline valves) on the existing ANR pipeline. The project will expand the ANR Pipeline system to connect supply directly to Gulf Coast liquefied natural gas (LNG) export facilities, TC Energy said. 

Construction began in December and the first phase of the project went into service in April, the company said, and the second phase is expected to be placed in service early next year. 

“GCXP offers a transportation solution that leverages ANR’s existing infrastructure,” TC Energy said. “Once complete, the project will enhance the reliability and flexibility of the ANR system.” 

The proposed AXP is a market-driven response to the rising demand for natural gas on the Gulf Coast and beyond, TC Energy said. 

The U.S. Energy Information Administration (EIA) projects that U.S. consumption of natural gas will average 82.5 Bcf/d (2.34 Bcm/d) this year, down 1% from 2020, according to its Short-Term Energy Outlook.  

However, the residential, commercial and industrial sectors are all projected to consume more natural gas in 2021 than they did in 2020, with the electrical power sector as the exception because of electric power generators switching to coal due to rising natural gas prices, according to EIA. 

EIA projects overall natural gas consumption to rise again to 83.78 Bcf/d (2.373 Bcm/d) in 2022, compared to a record high of 85.15 Bcf/d (2.411 Bcm/d) in 2019. 

TC Energy expects an update from the Federal Energy Regulatory Commission (FERC) regarding the project in late 2021 or early 2022. AXP would utilize existing capacity on the ANR pipeline system and Great Lakes Gas Transmission (GLGT) system, according to the fact sheet. 

The project would result in an addition of 165,000 Dth/d of incremental firm transportation capacity from the GLGT Emerson receipt point in Manitoba, Canada, to delivery locations along ANR’s Southeast Mainline in the Midwestern and Southern U.S., the fact sheet states.  

As part of the ANR expansion, a new compressor station would be built in Evangeline Parish, Louisiana, with a targeted in-service date of fourth-quarter 2022.  

– by Maddy McCarty, digital editor  


USD Partners Add Connectivity at Stroud Terminal  

(PGJ) – USD Partners is expanding connectivity, including pipeline access to the Cushing Hub, at its Stroud terminal.  

The expansion is being pursued by an affiliate of US Development Group, pursuant to its development rights at the terminal, and when completed will add a pipeline connection to a second 300,000-barrel storage tank at a third-party facility at the Cushing, Oklahoma, crude oil hub. 

The expanded connectivity is expected to allow incremental rail-to-pipeline shipments of crude oil to the Cushing Hub by giving the terminal better capability to provide multiple grades of crude oil simultaneously. Completed is targeted for the first quarter of 2022. 

“We are excited about the enhanced connectivity at the Stroud terminal that this additional connection into the Cushing Hub creates,” said Jim Albertson, senior vice president, Commercial Development-Canada. “This expansion facilitates greater market access and enhances the Stroud terminal’s ability to increase its customer base and fee generating commitments.” 

The Stroud terminal is located on 76-acres with the ability to unload one unit train per day and includes two 70,000 barrel onsite operational storage tanks and one truck bay. Additionally, the terminal is connected to the Cushing Hub by a 12-inch, 17-mile pipeline. 

“As the only unit train facility connected by pipeline to the Cushing Hub, this additional connectivity enhances the strategic value and competitive advantages of our Stroud destination terminal as a rail-to-pipeline solution for our customers,” said Brad Sanders, executive vice president and chief commercial officer for USD. 

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