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FERC staff gives good review to Tennessee Gas project to Cameron LNG

FERC Office of Energy Projects staff signed off on aTennessee Gas PipelineCo. proposal to build pipeline and compression facilities thatwould deliver natural gas to the Cameron LNG LLC export terminal and the southwestLouisiana market.

The Southwest Louisiana Supply project would provide anincremental 295,000 Dth/d of firm transportation service on the Tennessee Gas800 Line in addition to existing capacity of about 605,000 Dth/d for customersof the exportterminal, backed by a joint venture that includes .

"We have determined that if Tennessee constructs andoperates the proposed facilities in accordance with its application andsupplements, and the staff's recommended mitigation measures … approval of theproject would not constitute a major federal action significantly affecting thequality of the [environment]," staff said in the Sept. 28 environmental assessment.

Tennessee Gas has proposed an in-service date of February2018, under the assumption that FERC would authorize the project before aconstruction start date in the fourth quarter of 2016.

Agencies cooperating with FERC on the project review have untilDec. 28 to complete their work and submit comments on the environmental assessment.

On Oct. 26, 2015, the Kinder Morgan Inc. subsidiary to build and operate facilities.

The facilities would connect with .Tennessee Gas signed binding 20-year precedent agreements with project shippersMitsubishi Corp. andMMGS Inc. to move a total of 900,000 Dth/d on its system to the interconnectionin Cameron Parish, La.

The expansion project is expected to cost approximately $100million, according to information on the Kinder Morgan website, a decrease fromthe original $170 million estimate.

The facilities would be installed in Madison, Richland,Franklin and Rapides parishes in Louisiana, and modifications would be made tocompressor stations on the system.

The project would include construction and installation of2.4 miles of 30-inch-diameter pipeline lateral in Madison Parish; a1.4-mile-long, 30-inch-diameter pipeline lateral in Richland and Franklinparishes; five meter stations; one bidirectional compressor station in FranklinParish; and the replacement of a gas turbine engine at a compressor station inRapides Parish.

The modifications would also include piping to allow forbidirectional operations at three compressor stations in Rapides and Franklinparishes and in Yalobusha County, Miss. Additional modifications would occur ata compressor station in Jefferson Davis Parish, La. (CP16-12)