The Canadian energy infrastructure company, TransCanada received approval from the U.S.Federal Energy Regulatory Commission (FERC) for the construction of the Leach XPress gas pipeline and Rayne XPress project, the company announced on Thursday.
The Leach XPress pipeline project, which includes around $1.4 billion in investments, will enable the transportation of 1.5 billion cubic feet of natural gas per day from the Marcellus and Utica supply basin to homes, businesses and industries.
The 160-mile greenfield project crosses the northern panhandle of West Virginia and then tranverses southeastern Ohio.
The Rayne XPress project primarily involves the construction of two new compressor stations along TransCanada's existing Columbia Gulf pipeline system and is designed to create an additional 1 billion cubic feet of capacity per day to efficiently transport Marcellus and Utica production to markets in the Gulf Coast region and beyond.
According to the statement, the combined $1.8 billion investments in both projects will provide additional outlets to transport domestic, clean burning natural gas from the Marcellus and Utica shale formation areas which spans Ohio, Pennsylvania, West Virginia, New York, Quebec and other parts of eastern North America to higher-value Midwest and Gulf Coast markets.
Once outstanding regulatory approvals are obtained, the company plans to begin immediate preparations and construction on both projects in February.
"These projects will create critically needed connectivity between the prolific, but constrained, Marcellus and Utica shale production areas and higher value markets," Stan Chapman, TransCanada's senior vice-president and general manager of U.S. Natural Gas Pipelines, said.
By Ebru Sengul