Approval secured for US natural gas transportation projects

WCN Editorial Team 23 Jan 2017 NORTH AMERICA ENERGY & UTILITIES

TransCanada has received an approval from the Federal Energy Regulatory Commission (FERC) to build the Leach XPress and Rayne XPress projects in the US.

Both projects, which will have a combined investment of $1.8bn, will provide additional outlets to transport domestic, clean burning natural gas from the Marcellus and Utica production areas to the Midwest and Gulf Coast markets.

The $1.4bn Leach XPress project will allow the safe transport of approximately 1.5bn cb ft per day (bcf/d) of natural gas from the Marcellus and Utica supply basin to homes, businesses and industries.

The 257km greenfield project crosses the northern panhandle of West Virginia and then traverses southeastern Ohio.

The Rayne Xpress project will involve the construction of two new compressor stations along TransCanada's existing Columbia Gulf system and is designed to create an additional 1bcf/d of capacity to efficiently transport Marcellus and Utica production to markets in the Gulf Coast region and beyond.

Stan Chapman, TransCanada's senior vice president and general manager for US natural gas pipelines, said: "Approval of Leach XPress and Rayne XPress follows a very thorough review by the FERC.

"These projects will create critically needed connectivity between the prolific, but constrained, Marcellus and Utica shale production areas and higher value markets. The projects will also create significant new jobs and tax revenues for communities along the projects' routes."

Once the remaining regulatory approvals are obtained, TransCanada plans to begin right-of-way preparation and construction activities on both projects in February.

* Data provided by Timetric's Construction Intelligence Center.

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