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FERC authorizes Kinder Morgan pipeline project for Cameron LNG

FERC approved a proposed Tennessee Gas Pipeline Co. natural gas line to the Cameron LNG export terminal that will help increase the amount of gas available to the Louisiana facility by up to 900,000 Dth/d.

A Dec. 15 FERC order granted authorization for the Southwest Louisiana Supply project, which will provide an extra 295,000 Dth/d of firm gas transportation service to export terminal customers Mitsubishi Corp. and MMGS Inc. The project will provide the incremental service through the Tennessee Gas 800 Line from interconnections with five interstate pipelines, using two proposed laterals that the project will put in place, to an existing interconnection with Cameron Interstate Pipeline LLC in Cameron Parish, La., for delivery to the export terminal.

Tennessee Gas has precedent agreements with Southwest Louisiana Supply project shipper Mitsubishi for 600,000 Dth/d and with project shipper MMGS for 300,000 Dth/d of firm transportation service for primary terms of at least 20 years. In addition to the 295,000 Dth/d of firm transportation on the Southwest Louisiana Supply project's laterals, Tennessee Gas told FERC, the pipeline company will provide 605,000 Dth/d through existing capacity on the 800 Line and through additional capacity that can be found with upgrades to compressor stations.

The project is expected to cost the Kinder Morgan Inc. subsidiary approximately $170.5 million. Project facilities will include two laterals adding up to a total of 3.8 miles of 30-inch-diameter pipeline, one in Madison Parish and one in Richland and Franklin parishes in Louisiana, plus a bidirectional compressor station, modifications to other compressor stations and five meter stations.

Tennessee Gas submitted an application to FERC on Oct. 26, 2015. The project received a positive assessment in the commission's environmental review process. When the project application went to FERC, the project had an in-service date of February 2018, and Tennessee Gas anticipated a certificate order would be issued before an estimated construction start in the fourth quarter of 2016. One of the conditions in the FERC certificate order was that the project must be completed and available for service by Dec. 15, 2018. (FERC docket CP16-12)