Kinder Morgan, Inc.'s NGPL seeks FERC certificate for US$139M Texas gas expansion
FERC set an Oct. 22 intervention deadline as NGPL seeks 321,200 dekatherms a day of new capacity for power generation.
Ines Halvorsen
Oct. 22 is the deadline to intervene in a federal review of 321,200 dekatherms a day of proposed new Texas gas transport capacity sought by privately held Natural Gas Pipeline Company of America LLC, operated by Kinder Morgan, Inc. NYSEKMI. NGPL estimated the Amarillo expansion at US$139 million in its Sept. 17 application, according to FERC's Oct. 6 notice. A July 2 NGPL open-season notice identifies an unnamed pre-arranged shipper for 550,000 dekatherms a day of service, but does not disclose its rate or contract term.
Kinder Morgan shares were up, trading at US$32.45 in New York at 11:04:51 a.m. EDT on Friday, according to NYSEKMI.
The proposed service would combine new capacity with space already available on NGPL's system, so the 550,000-dekatherm daily amount is not all newly built capacity. On a project page read Oct. 9, Kinder Morgan estimates total spending at US$200 million, including about US$75 million as its share, and targets service in the third quarter of 2028. That undated company page and FERC's notice give different estimates for total cost.
FERC's notice says NGPL's Sept. 17 filing asks for authorization under section 7(c) of the Natural Gas Act. The regulator's docket index records an Oct. 2 staff data request and an NGPL response filed Oct. 9. The index does not describe the response's substance or give a certificate decision date.
Moore County Would Get Four Compressor Units
NGPL asks FERC to authorize a compressor station in Moore County with four gas-fired units rated at 5,500 horsepower each, for 22,000 horsepower in all. Its application also covers auxiliary facilities there and a new delivery point in Deaf Smith County, according to FERC's notice. The incremental capacity would join existing unused space on the line to serve electric power generation.
"Natural has entered into a pre-arranged negotiated rate transaction with the Pre-arranged Shipper for 550,000 Dth/day of the Project capacity," NGPL said in its July 2 notice.
The company asked other bidders for a minimum 10-year service term and a bid for at least 550,000 dekatherms a day. Those bid conditions do not state the unidentified shipper's term. The July notice gave that shipper the right to match any higher-value bid made during the open season.
FERC says people may comment, protest or seek to intervene in docket CP26-581-000. Intervention gives a party rights to seek rehearing of an eventual order, while a comment alone does not make the commenter a party. FERC staff must complete an environmental review or issue a review schedule within 90 days of the notice.
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NGPL's July open-season notice estimated service by September 2028, contingent on approvals and construction. Kinder Morgan's undated project page gives the broader third-quarter 2028 target. The next fixed date is Oct. 22 at 5 p.m. EDT, when FERC's intervention and comment window closes.
