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Texas Gas seeks shippers for lateral moving Marcellus, Utica output to Midwest

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Texas Gas Transmission plans to expand its natural gas pipeline system in order to move Marcellus and Utica shale supplies to markets in the Midwest, according to an binding open season notice issued Friday.

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The company is looking at building a pipeline lateral, to be known as the Southern Indiana Market Lateral, that would begin at Texas Gas' Slaughters-Montezuma Lateral near Robards, Kentucky, and extend westward about 30 miles to a location west of the city of Mount Vernon, Indiana, it said.

The lateral's targeted in-service date is July 2016, with the capacity to be determined by the open season, Texas Gas said as it sought shippers.


The company is also holding binding and non-binding open seasons for its Northern Supply Access Project, which will provide firm access to gas supplies through the new lateral.

The binding portion has a volume cap of 150,000 MMBtu/d for deliveries north or in the immediate vicinity of the Slaughters Compressor Station in Webster County, Kentucky. The expansion will begin in Lebanon, Ohio, and end in markets in Texas Gas zones 4 and 3, near Slaughters.

The targeted in-service date for the project is July 2016, with the company willing to consider earlier dates if possible.

The non-binding open season will look for about 335,000 MMBtu/d of additional firm transportation shippers for deliveries as far south as Texas Gas' zone SL in Louisiana or in the immediate vicinity of Slaughters, depending on interest, it said.

The projected in-service date of the non-binding open season portion is November 2016, or earlier if possible, the company said.

The open season began Friday and will end April 22.

Texas Gas was flowing 844,995 Mcf/d Friday, compared with a capacity of 1.2 Bcf/d, according to data from Platts unit Bentek Energy.

--T.L. Hamilton, tiffany.hamilton@platts.com
--Edited by Keiron Greenhalgh, keiron.greenhalgh@platts.com