FERC OKs Southwest Louisiana Supply Project

FERC has issued a certificate of public convenience and necessity to Tennessee Gas Pipeline Company, L.L.C., authorizing it to construct and operate the Southwest Louisiana Supply Project.   The certificate is contingent on Tennessee’s:

• completion of construction of the authorized facilities and making them available for service within two years of the date of this order pursuant to section 157.20(b) of the Commission’s regulations
• compliance with all applicable Commission regulations including, but not limited to, Parts 154, 157, and 284, and paragraphs (a), (c), (e), and (f) of section 157.20 of the Commission’s regulations;
• compliance with the environmental conditions listed in Appendix B to this order
• execution of firm service agreements equal to the levels of service and in accordance with the terms of service represented in the precedent agreements prior to commencing construction.

In its evaluation, FERC staff concluded the Southwest Louisiana Supply Project will have minimal impacts on landowners and surrounding communities, not degrade service to existing customers, and not adversely impact any other pipelines in the region or their captive customers.

The Southwest Louisiana Supply Project will enable Tennessee to provide an additional 295,000 Dth per day of firm transportation service for the project shippers, which have signed 20-year precedent agreements for a total of 900,000 Dth per day of project service.