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Update on three TransCanada pipeline projects

Published by
World Pipelines,


TransCanada Corporation has announced its Leach XPress (LXP) project was placed in-service on 1 January 2018, and that the Federal Energy Regulatory Commission (FERC) has issued a certificate of public convenience and necessity for its Mountaineer XPress (MXP) and Gulf XPress (GXP) projects on 29 December 2017. All three projects provide vital links between Appalachian natural gas supply and growing US markets.

LXP comprises 160 miles (257 km) of 36 in. dia. pipeline, three compressor stations, and modifications to an existing compressor station. Representing an investment of approximately US$1.6 billion, the pipeline is capable of transporting approximately 1.5 billion ft3/d of natural gas. Via an existing interconnect with TransCanada's Columbia Gulf Transmission System and its Rayne XPress (RXP) project, which was placed into service last November, LXP will facilitate the delivery of up to an additional 1 billion ft3/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," said Russ Girling, TransCanada President and CEO. "This is truly a best-in-class pipeline and we look forward to many years of safe, reliable, and efficient operation on behalf of our customers."

At peak construction, LXP employed nearly 5000 employees and contractors.

FERC's thorough review and approval of MXP and GXP follows three years of planning by TransCanada's project teams, along with over two years of outreach to communities and landowners along the projects' routes. Once remaining regulatory approvals are obtained, TransCanada plans to begin right-of-way preparation and construction activities on both projects, with an anticipated in-service date in late 2018.

"FERC's approval of Mountaineer XPress and Gulf XPress allows us to continue delivering on our commitment to create new outlets for our customers, transporting Marcellus and Utica shale gas to key markets in the US and beyond," said Stanley Chapman III, TransCanada's Executive Vice President and President, US Natural Gas Pipelines. "Our project teams are prepared to begin construction on both projects."

The MXP and GXP projects consist of combined infrastructure investment of US$3.2 billion. MXP will deliver approximately 2.6 billion ft3/d of gas to the TCO Pool and Leach markets on the Columbia Gas Transmission System through the construction of 170 miles (274 km) of 36 in. pipeline, three new compressor stations and upgrades to three existing compressor stations. GXP will transport approximately 0.8 billion ft3/d to southeast and Gulf Coast supply markets through the construction of seven new compressor stations, and upgrades to one existing compressor station, along TransCanada's existing Columbia Gulf System.

MXP and GXP are expected to create over 8000 jobs during peak construction later this year. Both are underpinned by long-term, fixed-fee, firm transportation service agreements. They will be designed, constructed and operated with a core focus on safety and minimising environmental impact.

TransCanada now has FERC Certificate Orders for all major Appalachian growth projects associated with the 2016 acquisition of Columbia Pipeline Group. Together, they represent a significant part of TransCanada's portfolio of complementary infrastructure assets and CAN$24 billion of near-term growth projects that is expected to underpin growth in the company's common dividend at the upper end of an 8 - 10% range annually through 2020 and an additional 8 - 10% in 2021.

Read the article online at: https://www.worldpipelines.com/project-news/03012018/update-on-three-transcanada-pipeline-projects/

 

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