Project Profile
Value: US$29 million
Location: from Marcellus Shale in Pennsylvania to TGP’s interconnect with TransCanada Pipeline, Niagara County, N.Y, USA
Capacity: unknown
Length: approximately 3.1 miles
Start-up Year: Nov. 1, 2015
Tennessee Gas Pipeline Company, L.L.C., (TGP) a Kinder Morgan Energy Partners, L.P. (NYSE: KMP) company, is proposing an expansion of its existing pipeline system to transport additional volumes of natural gas from Pennsylvania supply areas to the Niagara region of northern New York. As proposed, project facilities will include approximately 3.1 miles of pipeline looping in Chautauqua County, N.Y. Looping involves the installation of additional pipe adjacent to and connecting with existing pipeline. TGP also expects to modify piping within an existing compressor station in Mercer County, Pa. and modify an existing meter station facility in Erie County, N.Y. In December 2013, TGP signed a binding, 15-year firm transportation precedent agreement with Seneca Resources Corporation, the wholly owned exploration and production subsidiary of National Fuel Gas Company (NYSE: NFG) to ship 158,000 dekatherms per day of natural gas via the Niagara Expansion Project. Seneca will serve as the foundation shipper for TGP’s Niagara Expansion Project, which is designed to provide transportation from the prolific Marcellus Shale in Pennsylvania to TGP’s interconnect with TransCanada Pipeline in Niagara County, N.Y. TGP will provide for the expansion capacity through a combination of existing capacity, pipeline looping, compressor station modifications and off-system capacity on the interstate pipeline system of National Fuel Gas Supply Corporation, also a wholly owned subsidiary of National Fuel.
On February 21, 2014, TGP filed an application with the Federal Energy Regulatory Commission (FERC) for a certificate of public convenience and necessity. Construction and operation of interstate pipelines and related facilities may proceed only after the FERC finds that a proposed project is in the public interest and necessity. In addition to the FERC, a number of federal and state agencies will have a role in the approval process and oversight of the project, including the U.S. Environmental Protection Agency and the U.S. Army Corps of Engineers. Subject to regulatory approvals, construction would begin in April 2015, with anticipated in-service Nov. 1, 2015. The US$27.5 million project is expected to generate approximately 100 temporary construction jobs at peak, with approximately 85 temporary jobs in New York and 15 in Pennsylvania. The economic impact of construction for the project would be significant, as workers will reside locally and rely upon local businesses, housing, and support services during the construction period. Local businesses would benefit from servicing these workers and the project directly. The estimated annual New York local property tax revenue from this project is currently estimated to be approximately US$600,000 upon completion.
Project Timeline
- Agency and stakeholder Meetings – Ongoing
- FERC certificate filing – Feb. 21, 2014
- Begin construction – April 2015
- Complete construction – October 2015
- In-service date – Nov. 1, 2015
Operators:
Tennessee Gas Pipeline Company, L.L.C., (TGP) (subsidiary of Kinder Morgan Energy Partners, L.P.): Operator with 100% interest