KM Plans to Convert Tennessee Gas Pipeline to Flow M-U NGLs South

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TGP – section of pipeline to reverse & convert to NGLs (click for larger version)

Here’s a story that wasn’t actively on our radar. It’s an old story, but is now in the news again with the recent quorum reestablished at the Federal Energy Regulatory Commission (FERC). In August 2013, exactly four years ago, midstream giant Kinder Morgan and competitor midstream company MarkWest Energy (now part of Marathon Petroleum) signed a joint venture agreement to repurpose a significant portion of Kinder’s Tennessee Gas Pipeline (964 miles of it) running from the Louisiana Gulf Coast to Ohio. That 964-mile portion of TGP currently flows natural gas from the Gulf northward. Kinder and MarkWest want to reverse the flow and instead flow natural gas liquids (NGL) through the pipeline from the Utica and Marcellus region south to the Gulf Coast. The project would also build a new 200-mile pipeline from TGP in Louisiana to Texas. In order to make the project happen, the first step is to ask FERC for permission to “abandon” (stop using) the 964-mile segment, called Pipeline No. 1, from Louisiana to Ohio. Which TGP did in Feb. 2015. The project progressed. Last November FERC issued a favorable environmental assessment for the project (full copy below). And then FERC lost a quorum of voting members in February of this year, stalling further progress. With a quorum now restored, antis in Kentucky, a state that seems to be allergic to any kind of pipeline for any purpose, have begun bellyaching about it. Which is what caught our attention. We’ve gathered together information we can find on this project–a potentially very important project–to move Marcellus/Utica NGLs to the Gulf Coast…

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