Kinder Morgan's Gulf LNG Project Gets Green Light from FERC

The Federal Energy Regulatory Commission gave Kinder Morgan the approval to build its Gulf LNG export project in Mississippi in a 3-1 vote. The proposed project would add 11.5 million metric tons of new capacity to Kinder Morgan's terminal in Pascagoula, Mississippi, which would include two liquefaction plants.

Some Democrats opposed and concerned about LNG terminals' impacts on climate change, but FERC Chairman Neil Chaterjee praised the vote tweeting, "This is big news for the US & our allies. Today's approval of #GulfLNG is significant for the economy & America's geopolitical interests."

The company initially developed the Gulf LNG site as a liquefied natural gas import terminal in 2009. But with record production from U.S. shale plays creating a surplus of natural gas, the company filed an application with FERC in July 2015 seeking permission to redevelop part of the site as an export terminal.

The project will also modify the existing Gulf LNG Pipeline allow for bidirectional flow. It's the fifth LNG export project the agency has approved so far this year.

Source:
chron

$3.2B Appalachian Natural Gas Pipeline Gets Approval from FERC

U.S. Federal Energy Regulatory Commission has approved the full in-service of the Mountaineer XPress, a 170-mile natural gas pipeline project in West Virginia, TransCanada said on Friday.

The pipeline will increase natural gas capacity by 2.7 billion cubic feet per day. Together with related infrastructure such as new compressor stations and modifications to existing compressor stations, it will represent a total investment of US$3.2 billion. This will help link the Appalachian basin’s natural gas supplies and growing markets in the U.S. and beyond.

The approval of the full in-service of Mountaineer XPress will allow TransCanada to start partial in-service of its Gulf XPress Project, a network of seven new compressor stations in Kentucky, Tennessee, and Mississippi, which will significantly increase the reach of low-cost, U.S.-produced natural gas from the Appalachian Basin.

“Mountaineer XPress and Gulf XPress are extremely important to TransCanada as they provide much-needed takeaway capacity for our customers, while also growing our extensive footprint in the Appalachian Basin,” TransCanada President and CEO Russ Girling said.

Souce:
oilprice

Part of $3.2 Billion Mountaineer Xpress Natural Gas Pipeline in West Virginia Gets Approval to Be Put into Service

The FERC authorized TransCanada’s request on Monday to commence service on part of its 170 miles Mountaineer XPress natural gas pipeline in West Virginia. The approved portion of pipeline stretches about 21 miles in Marshall and Wetzel Counties.

The 2.6-billion cbfd Mountaineer pipeline project was about 45 percent complete and expected to be completely finished in February/March, the company said earlier this month.

The company also said that it plans to put its $600 million Gulf XPress gas pipeline into service along with Mountaineer. The 0.88-bcfd Gulf project includes seven new compressor stations in Kentucky, Tennessee and Mississippi.

The Mountaineer and Gulf projects are two of several pipes designed to connect growing output in the Marcellus and Utica shale basins in Pennsylvania, West Virginia and Ohio with customers elsewhere in the United States and Canada.

Source:
Reuters

Tallgrass Energy Announces Anchor Shipper for Seahorse Pipeline

Tallgrass Energy announced on Monday that it has signed a binding agreement with an unaffiliated third-party that will potentially be an anchor shipper and equity partner in Tallgrass’s Seahorse Pipeline.

The Seahorse Pipeline would move crude oil from Cushing, Okla. To both the St. James, La refining complex as well as Tallgrass’s planned Plaquemines Liquids Terminal (PLT) in Louisiana.

“The Seahorse agreement provides strong proof of concept for our pipeline project,” said Tallgrass Chief Operating Officer Bill Moler. “The market is excited about the versatility of Seahorse, which has multiple options including refinery demand in the St. James area and substantial export capability.”

On Nov. 30, Tallgrass Pony Express Pipeline, LLC will launch a new joint tariff open season soliciting shipper commitments for crude oil transportation under a joint tariff between the Pony Express and Seahorse Pipeline from Guernsey and DJ-Basin origin points to the St. James refinery complex and PLT.

There were additional announcements such as the acquisition of $30 million worth of land that will serve as the site for PLT. It is 600 acres across the Mississippi River about 30 miles south of New Orleans. PLT will offer up to 20 million barrels of storage for both crude oil and refined products and export facilities.

Source:
Street Insider

Enterprise Gas Plant Explosion Curtails Gulf Crude Supply

Two explosions and a resulting fire occurred at a natural gas processing plant in Pascagoula, Mississippi on Monday evening. No employees or surrounding communities were injured or impacted as the fire was restricted inside the facility.

The first explosion occurred around 11:30pm local time on Monday night while the second one followed just a few minutes later, according to Energy Management Director Early Etheridge. The resulting fire from the explosions was extinguished at around 5:00pm local time on Tuesday.

The Pascagoula plant as well as the Destin pipeline, a joint venture of BP and Enterprise that sends gas to Enterprise’s plant from platforms in the Gulf of Mexico, have been shut down while officials investigate the cause of the explosions.

Analysts report the temporary shutdown of the plant and pipeline along with the halt of production at several platforms in the Gulf of Mexico could "significantly" curtail supplies from the Gulf as the offshore platforms have to find another place to send their gas, thus threatening to raise oil and gas prices.

The plant has the capacity of 1.5 billion cubit feet of natural gas per day but was averaging about 400 million cubic feet per day. Officials are uncertain of how long the plant and pipeline will be offline.

Source:
Business Wire
Bloomberg
PennEnergy