January 2025, Vol. 252, No. 1
Projects
Projects January 2025
Kinder Morgan Approves Mississippi Crossing Project
Tennessee Gas Pipeline, a subsidiary of Kinder Morgan, reached a final investment decision to go forward with its $1.4 billion Mississippi Crossing Project (MSX). The project is designed to transport up to 1.5 Bcf/d of natural gas, enhancing supply to Southeast U.S. markets.
“This transformative project will benefit the Southeast region as it will provide incremental access to diverse sources of supply,” said Sital Mody, president of Natural Gas Pipelines at Kinder Morgan.
The MSX project will span 206 miles, featuring 42-inch and 36-inch pipelines along with two new compressor stations. It will originate near Greenville, Mississippi, and terminate near Butler, Alabama, with connections to TGP’s existing system and third-party pipelines.
Kinder Morgan is in final discussions with customers for an additional 400,000 MMcf/d of long-term commitments, which could require further investment for added capacity. The project is expected to be operational by November 2028.
“The fundamentals in the natural gas market are robust, with significant growth expected over the next five years from LNG exports, exports to Mexico, and power generation,” said Kinder Morgan CEO Kim Dang. “With today’s announcement, KMI has sanctioned approximately $3.1 billion in expansion capital, including the SNG South System 4 Expansion and the MSX Project.”
Argentina’s YPF Partners on Vaca Muerta Sur Oil Pipeline Project
Argentina’s state-run oil company YPF formed a new partnership with local oil companies to transport and export oil from its massive Vaca Muerta shale oil formation.
YPF said the partnership has committed to 275,000 bpd in capacity and has given options to Chevron Argentina, Pluspetrol and Shell Argentina, among others, for 230,000 bpd.
The project requires about $3 billion in financing from the partners, as well as local and foreign investors, the statement said. The proposed pipeline will have a transportation capacity of 550,000 bpd, with the capacity to increase to 700,000 bpd.
Construction has already begun, YPF said with operations planned to begin in July 2027.
YPF said it was partnering with Vista Energy Argentina, Pampa Energia and Pan American Sur to form VMOS S.A. to run its Vaca Muerta Sur project. The project includes a 294 miles (473 km) pipeline, loading and unloading terminal, and storage facilities.
YPF is committed to a transportation capacity of 120,000 bpd and holds a minority stake in VMOS.
India to Install Connecting Pipeline, Supply LNG to Sri Lanka
India will supply LNG to Sri Lanka’s power plants and will work on laying a pipeline between the nations and connecting their power grids, Indian Prime Minister Narendra Modi said at a media briefing.
Indian state-run firm Petronet LNGPLNG.NS recently signed a deal to supply LNG to Sri Lankan engineering firm LTL Holdings’ power plants in Colombo for five years through its terminal in the southern Indian city of Kochi.
Both sides also discussed a plan to connect power grids and lay a multi-product petroleum pipeline between the two countries, a joint statement from the Indian External Affairs Ministry said.
Sri Lankan President Anura Kumara Dissanayake, also spoke at the event, which came as part of his first official visit to Sri Lanka’s powerful neighbor after winning the presidency in September.
India had already extended more than $4 billion in aid to Sri Lanka during its financial crisis in 2022 and entered into a preliminary debt restructuring agreement, along with other bilateral creditors Japan and China.
FERC Approves Texas-Louisiana Kinder Morgan Expansion Project
The Federal Energy Regulatory Commission approved the Texas-Louisiana expansion project, filed by Natural Gas Pipeline Co. of America, a Kinder Morgan subsidiary, according to a FERC filing dated Nov. 21.
The project is designed to provide 467,000 Dth/d of firm transportation service—achieved through a combination of reserved unsubscribed capacity and 300,000 Dth/d of new eastbound capacity on the Louisiana Line – to meet the growing demand for natural gas in the Gulf Coast region of Texas and Louisiana.
The Louisiana Line consists of two 30-inch pipelines extending eastward from Compressor Station 302 in Montgomery County, Texas, to Vermilion Parish, Louisiana.
The expansion will involve modifications at two existing compressor stations in Texas: Compressor Station 302 in Montgomery County and Compressor Station 343 in Liberty County. The work includes adding new equipment to increase capacity and optimizing the existing units.
At Compressor Station 302, the company plans to install a new 18,340 hp electric motor-driven compressor unit and uprate two existing units. Similarly, Compressor Station 343 will see upgrades to its electric motor-driven units.
Additionally, auxiliary facilities, including gas cooling equipment, motor control centers, and filter separators, will be installed at both stations.
FERC concluded the project will benefit system reliability and have minimal impacts on landowners and surrounding communities, making it consistent with public interest criteria.
In response to a 2022 open season solicitation, Natural Gas secured binding precedent agreements for 337,000 Dth/d of firm transportation capacity, representing 83% of the proposed project’s total capacity.
The shippers include Devon Gas Services, EDF Trading North America, Golden Pass LNG Terminal, and Delfin Midstream, highlighting strong industry backing and regional demand.
Tamboran, APA Developing 23-Mile Sturt Plateau Pipeline
Tamboran Resources and Daly Waters Energy entered binding agreements with APA Group to build, own, and operate the 12-inch Sturt Plateau Pipeline for the proposed Shenandoah South Pilot Project in Australia’s Northern Territory.
The 23-mile (37-km) pipeline will connect the planned Sturt Plateau Compression Facility to APA’s existing Amadeus Gas Pipeline, serving as the delivery point for gas volumes under a long-term gas sales agreement (GSA) with the Northern Territory Government.
Under the agreement, Tamboran and DWE have secured all foundation capacity on the SPP through at least 2041, aligning with the term of the GSA, the companies said. The companies also retain competitive access and pricing rights for additional capacity after the initial period.
APA Group advanced project designs and approval applications and expects to place orders for long-lead components before the end of 2024. Construction is scheduled for the second half of 2025, with operations beginning in the first half of 2026 to align with gas production from the Shenandoah South Pilot Project.
Boardwalk OKs 110-Mile Mississippi Kosci Junction Pipeline
Boardwalk Pipelines approved the 1.16 Bcf/d Kosci Junction Pipeline project, a major investment by its subsidiary Gulf South Pipeline Company. The 110-mile pipeline will expand natural gas capacity to support growing energy needs in Mississippi and the southeastern United States.
The Kosci Junction project will include a 36-inch pipeline and compression facilities, designed to connect gas supplies from the Haynesville, Utica/Marcellus and Fayetteville basins to markets served by Gulf South’s existing system and new interconnects.
The pipeline is expected to be operational by the first half of 2029.
The project is supported by a 20-year agreement with an anchor customer, with negotiations ongoing for the remaining capacity, which could increase to 1.58 Bcf/d.
“The Kosci Junction Project provides a critical artery of gas supply needed to support the growth of data centers and industrial demand that is fueling the economic development of our country,” said Boardwalk President and CEO Scott Hallam.
Boardwalk said the project reflects its commitment to meeting the growing demand for electricity generation in the region. The company plans to enter the Federal Energy Regulatory Commission (FERC) pre-filing process in early 2025 and file for a FERC certificate by late 2025.
Lawmakers Blast New York for Blocking Pipeline Project
GOP lawmakers from New York and Pennsylvania strongly criticized the state of of New York’s move to prevent the Northern Access Pipeline, a $500 million natural gas infrastructure project.
National Fuel Gas’ pipeline would have shipped natural gas from Pennsylvania’s Marcellus Shale to markets in western New York, the Midwest and Canada.
“This action has once again robbed our state of a key opportunity for greater energy security and economic development,” said the letter signed by 11 Republican representatives, including Nicole Malliotakis, Claudia Tenney and Nick LaLota.
The demise of the project came after nearly a decade of delays, blamed by Republicans on the New York’s Department of Environmental Conservation (DEC), which relied on Section 401 of the Clean Water Act to deny permits, causing delays, cost overruns and litigation.
The lawmakers also cited federal approval from the Federal Energy Regulatory Commission (FERC) and cooperation from other states as evidence that New York’s opposition was unwarranted.
The Northern Access Pipeline cancellation comes amid ongoing debates about balancing environmental concerns with the need for energy independence and job creation.
The letter to Hochul was signed by Reps. Nicole Malliotakis, Dan Meuser, Andrew R. Garbarino, Nick LaLota, John Joyce, Mike Kelly, Claudia Tenney, Glenn Thompson, Guy Reschenthaler, Michael V. Lawler, and Chris Jacobs.
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