FERC Approves Kinder Morgan’s $72 Million Texas-Louisiana Expansion
By Mary Holcomb, Digital Editor
(P&GJ) — The Federal Energy Regulatory Commission (FERC) has granted Natural Gas Pipeline Company of America LLC, a subsidiary of Kinder Morgan (KM), authorization to expand its natural gas facilities in Texas and Louisiana.
Known as the Texas-Louisiana Expansion Project, the initiative aims to bolster firm transportation service capacity by 467,000 dekatherms per day (Dth/d) to meet surging demand in the Gulf Coast region.
The $72 million expansion will utilize both new and reserved capacity on Natural’s Louisiana Line, a system of 30-inch pipelines running from Montgomery County, Texas, to Vermilion Parish, Louisiana. Of the total capacity, 300,000 Dth/d will be new eastbound firm transportation, while the remaining portion will be reserved from existing unsubscribed capacity on various transportation paths.
Pipeline Route and Information
For an overview of this project and other related infrastructure developments, visit Global Energy Infrastructure.
The project includes upgrades to existing compressor stations in Montgomery and Liberty counties, Texas. At the Montgomery County site, Compressor Station 302 will see its certificated horsepower increased from 26,800 to 48,340.
This will involve installing a new 18,340 HP electric motor-driven compressor unit, uprating two existing units by 1,600 HP each, and optimizing all three units through re-wheeling. Similar modifications will occur at Compressor Station 343 in Liberty County, where two compressor units will also be re-wheeled. Additional auxiliary facilities, such as gas cooling equipment and filter separators, will be installed at both locations.
Natural conducted a non-binding open season for the project in 2022, receiving strong interest from shippers. Long-term precedent agreements have been secured with companies including Devon Gas Services, EDF Trading North America, and Golden Pass LNG Terminal, collectively accounting for 83% of the project’s total capacity. However, one shipper, Delfin Midstream, has indicated potential challenges in fulfilling its agreement for 80,000 Dth/d of capacity.
In approving the project, FERC noted its alignment with the Certificate Policy Statement, which assesses public benefits and potential adverse effects. The Commission said that the project addresses growing regional demand without subsidization from existing customers and minimizes environmental and land-use impacts by upgrading existing infrastructure.
“We find that Natural has demonstrated a need for the Texas-Louisiana Expansion Project, which will improve system reliability and flexibility,” FERC said in the Nov. 21 filing. “Further, the project will not have adverse impacts on Natural’s existing shippers or other pipelines and their existing customers, and the project’s benefits will outweigh any adverse impacts on landowners and surrounding communities.”
Construction and operational timelines for the project have not yet been disclosed.
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