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Tennessee Gas, Southern Natural apply for pipe expansions to serve LNG plant from SNL Daily Gas Report Tennessee Gas, Southern Natural apply for pipe expansions to serve LNG plantByline: Sean Sullivan Southern Natural Gas Co. LLC and Tennessee Gas Pipeline Co. applied for federal authorizations that would let them build expansions of their pipeline systems and arrange a lease of 1.1 million Dth/d of natural gas transportation capacity to serve Venture Global LNG Inc.'s proposed Plaquemines export terminal in Louisiana. Southern Natural Gas asked the Federal Energy Regulatory Commission for a Natural Gas Act certificate for its estimated $171 million SNG Evangeline Pass expansion project in a Feb. 7 application. The project would involve building a new compressor station and three new meter stations and modifying other compressor stations to allow for bidirectional flow of gas. The company also asked FERC for authorization to abandon the project capacity by lease to affiliate Tennessee Gas Pipeline. Pipeline giant Kinder Morgan Inc. owns half of Southern Natural Gas and all of Tennessee Gas Pipeline. Southern Natural Gas asked FERC to issue the approvals by Jan. 31, 2021, to give the company enough time to meet a proposed in-service date of Dec. 1, 2022. (FERC docket CP20-51) In a separate abbreviated application, Tennessee Gas Pipeline asked FERC for authorizations to build its part of the Evangeline Pass expansion and to acquire the lease capacity on the Southern Natural Gas project. The project components would include a new compressor station in Louisiana, sections of looping pipeline on its system, and modifications to existing compressor units. Tennessee Gas Pipeline estimated the cost would be about $261.7 million. (FERC docket CP20-50) Through the SNG Evangeline Pass expansion, Southern Natural Gas would provide 1.1 million Dth/d of southbound gas transportation capacity via a 20-year lease to Tennessee Gas Pipeline. Tennessee Gas Pipeline would pay Southern Natural Gas a monthly lease payment of about $2.9 million, plus a fuel rate. Southern Natural Gas would receive the gas from Tennessee Gas Pipeline in Mississippi and re-deliver the gas to Tennessee Gas Pipeline in southern Louisiana. Tennessee Gas would use the capacity to provide feedgas to the Plaquemines LNG terminal on the Mississippi River. Tennessee Gas has signed an agreement to provide up to 2 million Dth/d of firm transportation capacity to Venture Global's proposed Gator Express pipeline that would connect to the terminal. FERC approved the Plaquemines terminal, designed to have an LNG production capacity of about 20 million tonnes per annum, and the Gator Express pipeline in September 2019. |
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