Gulf Coast Southbound Pipeline

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
Sub-articles:

Gulf Coast Southbound Expansion is a natural gas pipeline in the United States. It is part of the NGPL pipeline system. Phases I and II are in service, and Phase III is under construction.[1]

Location, Phases I–III

The pipeline will run from Chicago, Illinois to Agua Dulce Hub, Texas and Henry, LA.

Loading map...

Project details

Phase I

  • Owner: Natural Gas Pipeline Company of America LLC (NGPL)[2]
  • Parent company: Kinder Morgan[3]
  • Proposed capacity: 460 MMcf/d
  • Status: Operating
  • Start year: 2017–2018

Phase II

  • Owner: Natural Gas Pipeline Company of America LLC (NGPL)[2]
  • Parent company: Kinder Morgan[3]
  • Capacity: 300 MMcf/d[2]
  • Length: 0 new kilometers[2]
  • Cost: US$145 million[2]
  • Status: Operating[4]
  • Start year: 2021[2]

Phase III

  • Owner: Natural Gas Pipeline Company of America LLC (NGPL)[2]
  • Parent company: Kinder Morgan[3]
  • Capacity: 260 MMcf/d[2]
  • Length: 0 new kilometers[2]
  • Cost: US$145 million[2]
  • Status: Proposed[2]
  • Start year: unknown (delayed)
    • Originally 2021[2]

Background

Phase I background

The Gulf Coast Southbound Expansion Project is a response to growing industrial demand and export opportunities in the Gulf Coast area. The first phase of the project is currently in service and designed to transport 460,000 dekatherms per day (Dth/d) from interstate pipeline interconnects in Illinois, Arkansas and Texas. The second phase is in the contractual stage, and will provide an additional 300,000 Dth/d of firm southbound capacity. This phase is anticipated to be placed into service in mid-2021. NGPL is currently seeking non-binding solicitations of interest for a third phase of the project. Phase III will provide for 260,000 Dth/d of incremental firm southbound transportation service from existing or new interconnects on NGPL’s system in Illinois and Iowa to growing markets along the Texas and Louisiana Gulf Coast.[3]

In April 2017, the first part of this project was placed online, adding 75 MMCf/d of southbound transportation capacity along the NGPL system. The remaining portion was completed in the fourth quarter of 2018, adding an additional 385 MMcf/d of southbound transportation capacity. These volumes are protected by long-term firm transportation agreements. In Kinder Morgan's 2017 10-K, the company mentions its share of the capital expenditures is roughly $106 million, indicating the entire project is probably going to cost the venture a gross $212 million (plus any uncapitalized costs incurred).[5]

Phase II and III background

Phases II is completed but not yet operational, and Phase III is proposed.

The second phase is in the contractual stage and will provide an additional 300,000 Dth/d of firm southbound capacity. This is anticipated to be placed into service in mid-2021. NGPL is currently seeking non-binding solicitations of interest for a third phase of the project.

Phase III will provide for 260,000 Dth/d of incremental firm southbound transportation service from existing or new interconnects on NGPL’s system in Illinois and Iowa to growing markets along the Texas and Louisiana Gulf Coast.[3]

Phase II and III will add new compressor stations to increase southbound capacity from Alliance receipt point in IL to Corpus Christi LNG in TX. Neither Phase II nor III includes adding any additional miles of pipeline, both are only capacity expansions. Phase II has been approved by the Federal Energy Regulatory Commission (FER) and Phase III is pending approval.[2]

According to the U.S. Energy Information Administration, as of April 2021 construction was complete on Phase II. Phase I remains announced, but not yet approved by FERC.[4]

Expansion Projects

Lockridge Extension Pipeline Project

The expansion project will bring additional Permian natural gas to the Waha hub in Waha, Texas.[2] The project enables NGPL to deliver up to 500,000 Dth/d to the Waha Hub with an extension of its Amarillo system, and is supported by long-term take-or-pay contracts.[6]

The expansion entered service on September 18, 2020.[6]

Loading map...
  • Owner: Natural Gas Pipeline Company of America LLC (NGPL)[2]
  • Parent company: Kinder Morgan[3]
  • Capacity: 500 MMcf/d[2]
  • Length: 16.8 miles[2]
  • Diameter: 30 in[2]
  • Cost: US$51 million[6]
  • Status: Operating[6]
  • Start year: 2020[2]

134th Street Lateral Project

The expansion project involves the Natural Gas Pipeline Company of America (Natural) constructing, owning, operating, modifying, and maintaining an approximately 1.4 mile, 12-inch diameter pipeline lateral and appurtenant facilities, including a pig launcher and assembly and associated piping and fittings, in Cook County, Illinois and Lake County, Indiana. The proposed project also includes a new delivery interconnection between Natural and Northern Indiana Public Service Company (NIPSCO), a local distribution company with facilities in Northwestern Indiana.[7]

According to the U.S. Energy Information Administration, as of April 2021 the project was under construction. It was completed in August 2021.[4]

  • Owner: Natural Gas Pipeline Company of America LLC (NGPL)[2]
  • Parent company: Kinder Morgan[3]
  • Capacity: 70 MMcf/d[2]
  • Length: 1.4 mi[2]
  • Diameter: 20 in[2]
  • Cost: US$16.2 million[2]
  • Status: Operating[4]
  • Start year: 2021[4]

Articles and resources

References

  1. NGPL- Gulf Coast Southbound Expansion Phase II, RBN Energy, accessed Aug. 17, 2021.
  2. 2.00 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 Natural Gas Data, Pipeline Projects Energy Information Agency, accessed Aug. 17, 2021.
  3. 3.0 3.1 3.2 3.3 3.4 3.5 3.6 NGPL- Gulf Coast Southbound Expansion Project, Kinder Morgan, accessed Aug. 17, 2021.
  4. 4.0 4.1 4.2 4.3 4.4 U.S. natural gas pipeline projects, U.S. Energy Information Administration, Apr. 29, 2021, accessed Aug. 17, 2021.
  5. Callum Turcan, Kinder Morgan's 9,100-Mile Long NGPL Gas Pipeline, Seeking Alpha, Jul. 13, 2018, accessed Aug. 17, 2021.
  6. 6.0 6.1 6.2 6.3 Kinder Morgan announces results for third quarter of 2020; maintains $0.2625 per share dividend BOE Report, Oct. 21, 2020, accessed Aug. 17, 2021.
  7. Natural Gas Pipeline Company of America LLC; Notice of Request Under Blanket Authorization Federal Energy Regulatory Commission, Dec. 3, 2019, accessed Aug. 17, 2021.

Related GEM.wiki articles

External resources

External articles