Northern Seeks Approval for $105 Million Permian Basin Gas Expansion
Northern Natural Gas is seeking FERC approval for a $105 million Permian Basin expansion that includes new pipeline, compression and delivery facilities to serve a planned Texas power plant.
Mary Holcomb, Lead Digital Editor
(P&GJ) — Northern Natural Gas has filed an application with the Federal Energy Regulatory Commission seeking approval for its $105 million Permian Basin Expansion Project, a natural gas infrastructure buildout designed to serve a new power generation facility in West Texas.
According to a FERC filing, the project would add approximately 15.1 miles of 24-inch pipeline in Lea County, New Mexico, and 1.1 miles of 16-inch pipeline in Gaines County, Texas. Northern also plans to construct a new 7,700-horsepower compressor station in Lea County and an interconnect with Transwestern Pipeline within the existing Phillips 66 Linam Ranch Plant.
Additional facilities would include a receiver at Northern's existing launcher site, modifications to the Plains Compressor Station and a new delivery point serving Southwestern Public Service Co.'s planned Gaines County Generating Station.
The expansion is designed to provide approximately 361 million cubic feet per day of peak-day firm transportation service to the new power facility while enhancing reliability and operational flexibility across Northern's existing pipeline system.
Northern estimates the total project cost at $104.9 million and has requested rolled-in rate treatment for the expansion costs.
The company filed its application with FERC on May 28 under Docket No. CP26-534-000. Federal regulators issued a notice of application on June 12 and established a June 30 deadline for motions to intervene.
FERC staff said it expects to either complete its environmental review or issue a schedule for environmental review within 90 days of the notice.
If approved, the project would expand natural gas delivery infrastructure in a portion of the Permian Basin where power demand continues to grow alongside oil and gas development and electrification needs.
Pipeline Route and Information
For an overview of this project and other related infrastructure developments, visit Global Energy Infrastructure.