Texas Gas Asks FERC for Extra 2 Yrs on Northern Supply Access Proj

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Texas Gas Transmission (TGT) is a big pipeline network owned and operated by Boardwalk Pipeline Partners. Originally built from the Louisiana Gulf Coast to the upper Midwest, the purpose of the pipeline system was to supply Illinois, Indiana and Ohio with natural gas. Then the Marcellus/Utica Shale happened and TGT needed to change strategies. Through a series of projects, TGT made the pipeline system bidirectional, so it could flow gas from the Marcellus/Utica to points south, going as far as the Gulf Coast. One of the primary projects to accomplish that objective is called the Northern Access Supply Project, which first landed on our radar in Sept. 2015 (see Northern Supply Access Proj. Expands OH to Gulf Pipeline Capacity). Northern Access Supply was authorized by the Federal Energy Regulatory Commission (FERC) in March 2016 to “construct a new compressor station in Hamilton County, Ohio and make modifications at eight existing compressor stations in, Indiana, Kentucky, Tennessee, Mississippi, and Louisiana in order to enable Texas Gas to provide an additional 384,000 million British thermal units (“MMBtu”) per day of firm transportation service primarily in a north-to-south direction on Texas Gas’s system while maintaining Texas Gas’s current ability to flow gas south-to-north.” FERC gave TGT two years to get the work done (deadline March 2018). While some of the work has been done, not all of it has–and now TGT is asking for more time–an additional two years (to March 2020) to complete the project. Why? Because one of shippers contracted to use 100,000 MMBtus of that capacity (or 26% of the increased capacity) has filed for bankruptcy and can’t fulfill its commitment. So TGT wants to delay the final work until it has more customers for the other 100,000 MMBtus of capacity…

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