Tallgrass Interstate Gas Transmission LLC applied for federal authorization to decrease the capacity authorized for firm service at the Huntsman natural gas storage facility in Nebraska and convert it to the no-notice service that customers are demanding.
The request came in a Dec. 20 abbreviated application for abandonment and certificate authorization filed with the Federal Energy Regulatory Commission. The Tallgrass Operations LLC company said the proposed conversion was in response to customer demand for additional no-notice capacity and a decreasing demand for Cheyenne Market Center service. All of the existing Cheyenne Market Center service up for conversion will be unsubscribed as of June 1, 2018.
"TIGT shippers place a higher value on [no-notice service] than CMC service," according to Tallgrass. "As such, TIGT is proposing to reconfigure its firm storage services to provide additional NNS capacity — the storage service most valued by the market."
Tallgrass asked the commission to issue the authorization by June 1, 2018. (FERC docket CP18-34)
The conversion would decrease the storage capacity for Cheyenne Market Center service by 1,629,000 Dth and increase the capacity for no-notice service by 762,373 Dth. Tallgrass said the conversion would allow it to make the best use of its facilities while avoiding new construction or modifications.
A project shipper has agreed to pay Tallgrass' maximum recourse rate for 675,000 Dth of no-notice service. Another shipper expressed interest in obtaining no-notice service if additional capacity becomes available.
The Huntsman facility, an underground storage facility, is used to provide firm and interruptible storage services on Tallgrass' interstate pipeline system. According to Tallgrass, the firm storage capacity generated by the Huntsman 2009 expansion project, which increased capacity by 1,000,000 Dth for a total of 7,000,000 Dth of Cheyenne Market Center service, has never been contracted for at the maximum recourse rate, while no-notice service is fully subscribed at the maximum recourse rate. (FERC docket CP09-109)