National Fuel Gas Holds Open Seasons

January 2011 Vol. 238 No. 1


National Fuel Gas Supply Corp. and Empire Pipeline, Inc., the operating companies that make up the Pipeline and Storage segment of National Fuel Gas Co., are holding two open seasons aimed at making firm transportation capacity available from the Marcellus Shale formation in the central and southwestern producing regions of Pennsylvania.

Empire’s Open Season 008 offers capacity in Empire’s Tioga County Extension Phase 2 Project (TCE2), which is being designed to provide 260,000 Dth/d of incremental firm transportation from producer interconnections in Pennsylvania’s Bradford and Tioga counties, as well as from prospective interconnections with the Tennessee Gas Pipeline 300 Line and the proposed Penn Virginia Resources Midstream pipeline in Tioga and Lycoming counties.

This transportation capacity would provide access to diverse markets at several Empire delivery points, including Empire’s existing interconnection with TransCanada Pipeline at Chippawa, its planned interconnection with the TGP 200 Line near Rochester, NY and its existing interconnection with Millennium Pipeline at Corning, NY.

The TCE2 project facilities would include two new compressor stations, 25 miles of 24-inch or 30-inch high-pressure pipeline, and other enhancements along Empire’s existing system. The high-pressure pipeline would begin at a new interconnection with the TGP 300 Line and/or an interconnection with the proposed PVR pipeline, and would extend north to Jackson Township, PA where it would connect with the 24-inch pipeline that Empire expects to construct in 2011 as part of its previously announced Tioga County Extension Phase 1 Project (TCE1).

TCE1, which was the subject of Empire Open Season 006, is being designed to provide 350,000 Dth/d of incremental transportation capacity from Jackson Township, PA to Empire’s interconnect with TransCanada Pipeline at Chippawa. Empire filed its FERC 7(c) application for the TCE1 project on Aug. 26, 2010 and service is expected to commence Sept. 1, 2011. Empire has executed precedent agreements with anchor shippers Shell Energy North America (US) L.P., and Talisman Energy USA Inc., and the capacity is fully subscribed.
Depending on final facility design and open season awards, TCE2 would also provide significant short-haul capacity from the Pennsylvania producing area to Millennium Pipeline at Corning. Empire expects that TCE2 could be placed in service as early as Sept. 1, 2013.

Supply’s Open Season 167 offers an additional 45,000 Dth/d of transportation capacity in conjunction with its previously announced Line N Phase II expansion project. The final facility design has made this additional capacity available from receipt points at new and existing producer interconnects along Supply’s Line N system in Pennsylvania’s Greene, Washington and Beaver counties to a delivery point at Supply’s proposed interconnection with Texas Eastern Transmission Corporation at Holbrook Station in Greene County, PA.
Supply’s Line N Phase II facilities would include additional compression at its Buffalo Station, along with six miles of pipeline replacement in Washington County, PA. The Line N Phase II project, which would have a total maximum capacity of 195,000 Dth/d, is supported by Range Resources Appalachia, LLC, which has executed a Precedent Agreement for 150,000 Dth/d.

Supply filed its FERC 7(c) application on June 11, 2010 for the Line N Phase I expansion project which is being designed to provide 160,000 Dth/d of incremental transportation capacity. This project is fully subscribed and has a projected in-service date of Sept. 1, 2011.

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