Houston — Enbridge asked US regulators on Tuesday to place in service the remaining facilities on the second phase of its Texas Eastern Appalachian Lease project, an expansion that is designed to increase access for shippers on the Nexus Gas Transmission pipeline to upstream Appalachian gas supplies.
The remaining facilities include a gas turbine compressor unit and incremental gas cooling at Texas Eastern's Colerain Compressor Station in Belmont County, Ohio.
Nexus outflows to the Midcon have reached the highest levels to date recently, peaking at approximately 1.2 Bcf/d on April 12, versus a 1.5 Bcf/d capacity, S&P Global Platts Analytics data show. The run-up was mostly driven by residential-commercial demand in the US Northeast dropping from 13.4 Bcf/d on April 1 to 7.7 Bcf/d on Tuesday, freeing up supplies to flow westbound to the Midcon.
Despite the recent highs, only about 0.9 Bcf/d of the capacity on Nexus is contracted, implying it may run underutilized through the summer, Platts Analytics data show.
Once fully operational, the $220 million TEAL project will provide 950,155 Dt/d of transportation capacity. TEAL calls for abandonment by lease of the new capacity created by the project to Nexus.
Phase I of TEAL, which enables 637,559 Dt/d of capacity, entered service in November 2018. It entailed 4.4 miles of new 36-inch-diameter pipeline loop in Texas Eastern's Zone M2 and facilities required for reversal of Texas Eastern's Line 73 and connecting it with the Nexus project.
Phase II includes the new Salineville Compressor Station in Columbiana County, Ohio, the compressor unit at the Colerain Compressor Station, and related facilities.
"Texas Eastern has achieved mechanical completion of the project facilities and confirms that rehabilitation and restoration of the affected project sites are proceeding satisfactorily," the operator said in a letter to the Federal Energy Regulatory Commission.
The letter asks for permission by April 22 to place the remaining facilities into service.
The roughly 256-mile, 1.5 Bcf/d Nexus Gas Transmission began initial service in mid-October 2018. During the first month of service, an average 345 MMcf/d of gas flowed on TEAL capacity to be delivered into the Nexus mainline at an interconnection in Monroe County, Ohio, before flowing farther north toward downstream markets in the Upper Midwest and to the Dawn Hub in Ontario, Canada.
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S&P Global Platts Insight | April 2019 | Shape Shifting: US power markets
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