FERC approves $3.2B TransCanada pipeline projects
- The Federal Energy Regulatory Commission has approved two TransCanada Corp. pipeline projects, and the company says a third was recently brought online. The trio will provide "vital links" between Appalachian gas supply and gas markets, according to TransCanada.
- FERC on Dec. 29 issued certificates for the Mountaineer XPress (MXP) and Gulf XPress (GXP) projects, a combined $3.2 billion investment to ship Marcellus and Utica shale gas to key markets in the United States.
- In addition, TransCanada's Leach XPress (LXP) project came online Jan. 1. The 160-mile project will move about 1.5 billion cubic feet/day (Bcf/d) to Southeast and Gulf Coast supply markets.
TransCanada acquired Columbia Pipeline Group in 2016 with an eye towards growing its gas transmission network, and now the company says it has FERC approvals for all of the major Appalachian growth projects associated with that deal.
Approval of the Mountaineer XPress and Gulf XPress projects "allows us to continue delivering on our commitment to create new outlets for our customers," a TransCanada executive said in a statement.
Mountaineer XPress will deliver approximately 2.6 Bcf/d of gas to the TCO Pool and Leach markets on the Columbia Gas Transmission System. The project includes construction of 170 miles of 36-inch pipeline, three new compressor stations and upgrades to three existing compressor stations. Gulf XPress will transport approximately 0.8 Bcf/d to Southeast and Gulf Coast supply markets through the construction of seven new compressor stations and upgrades to one existing compressor station along the Columbia Gulf System.
According to TransCanada, building the two pipelines will create more than 8,000 jobs during peak construction. Both projects are underpinned by long-term, fixed-fee, firm transportation service agreements.
The newly-operational pipeline, Leach XPress, is a 160-mile system with three new compressor stations and modifications made to a fourth. The $1.6 billion pipeline can move 1.5 Bcf/d via an existing interconnect with TransCanada's Columbia Gulf Transmission System and its Rayne XPress project. Ultimately, LXP will facilitate the delivery of up to an additional 1 Bcf/d to Southeast and Gulf Coast supply markets.
"Successful completion of Leach XPress is a prime example of TransCanada's North American strategy of connecting prolific and growing supply basins with markets eager to access reliable, reasonably priced sources of energy," Russ Girling, TransCanada President and CEO, said in a statement.
At peak construction, LXP employed nearly 5,000 employees and contractors.
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