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FERC staff signs off on proposed $45M line from Sendero Midstream gas plant

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Essential Energy Insights - January 2021


FERC staff signs off on proposed $45M line from Sendero Midstream gas plant

The staff of the Federal Energy Regulatory Commission cleared the way for a full commission decision after it issued a positive environmental review for Sendero Carlsbad Gateway LLC's proposed 400 million-standard-cubic-feet-per-day Gateway pipeline project that would expand natural gas transportation capacity between a processing plant in southeast New Mexico and the Waha Hub in Texas.

In a Jan. 11 environmental assessment, the FERC staff found that a commission approval of the estimated $45 million Gateway project would not cause significant harm to the environment. The report contained recommended mitigation measures.

Sendero Carlsbad Gateway, a subsidiary of Sendero Midstream Partners LP's Sendero Midstream Holdings LLC, applied for the pipeline project in August 2018. The line would start at the Carlsbad gas processing facility in New Mexico, owned by affiliate Sendero Carlsbad Midstream LLC, and run to a Texas interconnection with WhiteWater Midstream LLC's Agua Blanca intrastate pipeline system, which connects to the Waha hub in Pecos County, Texas. The project would include a 23-mile-long, 24-inch-diameter pipeline and other facilities in parts of Eddy County, N.M., and Culberson County, Texas.

Sendero Carlsbad Gateway proposed the pipeline in anticipation of an expansion in processing capability at the Carlsbad plant. The plant expansion is expected to be completed in July 2019. (FERC docket CP18-538)