Florida Gas Transmission Co., Southern Natural Gas Co., Tennessee Gas Pipeline Co., Texas Eastern Transmission Corp., and ANR Pipeline Co. plan to jointly build a 900 MMcfd gas pipeline in southern Alabama.
The five companies filed a settlement proposal with the Federal Energy Regulatory Commission to lay the $48 million, 36 in. Mobile Bay pipeline. They will withdraw their other onshore project applications in the area upon FERC approval of the joint project.
Among other news on the U.S. gas pipeline front:
- Valero Energy Corp., San Antonio, and Exxon Gas System Inc. (EGSI) formed a joint venture to boost capacity on a section of Valero's proposed East Texas extension.
- Natural Gas Pipeline Co. of America (NGPL), Lombard, Ill., is adding compression to part of its Louisiana line.
- Federal regulators recommended that Triumph Natural Gas Inc.'s Delta Pipeline CO. project in eastern Oklahoma and western Arkansas be issued a certificate of approval on all nonenvironmental issues.
MOBILE BAY LINE
Mobile Bay pipeline will gather gas from onshore processing plants in the Mobile Bay area and extend 52 miles north to connect with the Florida Gas system near Citronelle, Ala.
Florida Gas and Tennessee Gas, both of Houston, and Southern Natural, Birmingham, will each have 200 MMcfd of capacity in Mobile Bay. Texas Eastern, Houston, and ANR, Detroit, will have 150 MMcfd each.
In addition, Southern Natural, Tennessee Gas, Texas Eastern, and ANR will lease capacity in the Florida Gas line equal to their Mobile Bay capacities, through which they will connect with their own systems.
The companies have proposed that FERC issue a conditional certificate delaying construction until the agency completes its environmental review. They say the joint project resolves all nonenvironmental issues in their prior filings.
VALERO-EGSI VENTURE
Valero and EGSI plan to change a 381/2-mile link of the planned East Texas extension to 36 in. from 30 in., boosting capacity by about 200 MMcfd. The affected section will run from Henderson to Carthage, Tex., part of Valero's proposed 105 mile line from Bethel, Tex., to Carthage.
EGSI will own 20% of the 36 in. link, which begins where the Valero pipeline will cross EGSI's East Texas system near Henderson. A unit of Valero Natural Gas Partners will operate the pipeline.
Construction on the East Texas extension will begin in October, Valero said. The 36 in. section is scheduled to be completed by Jan. 1, 1991, and the entire line during first quarter 1991.
LOUISIANA LINE
Construction began in May on a 3,600 hp Louisiana line compressor station in Cameron Parish, La., which will hike capacity east of the Stingray system by as much as 220 MMcfd from its present 900 MMcfd. NGPL expects the $5.1 million station to be complete by fall.
The station will be about 44 miles west of Henry Hub, near Erath, La. NGPL said the 205 mile line's capacity from New Caney, Tex., to the Henry Hub interchange has been fully subscribed for 2 years.
TRIUMPH RECOMMENDATION
FERC made what Triumph called "a precedent setting preliminary determination" that certifying the 191 mile, 24 in. Delta pipeline on nonenvironmental issues would be in the public interest.
A review of environmental aspects of the Delta line through the Arkoma basin is pending.
Triumph said early FERC assessments on this issue show no roadblocks to prevent final clearance.
Assuming timely approval, Triumph expects to begin laying the $82.1 million Delta line by September and have it finished by spring 1991. It has received more than 1.2 bcfd in firm requests for service on the line, which will have more than 250 MMcfd initial capacity.
Delta will extend east from Wilburton field, Okla., pass through Red Oak field, then run southeast via Yell County, Ark., and connect with NGPL and Texas Eastern lines south of Malvern, Ark.
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