The Leach XPress project adds take-away capacity in the Marcellus and Utica shale basins in Ohio, Pennsylvania and West Virginia
TransCanada Corporation’s (ticker: TRP) Leach XPress project (LXP) was placed in-service on January 1, 2018.
Through an existing interconnect with TransCanada’s Columbia Gulf Transmission System and its Rayne XPress (RXP) project, which was placed into service last November, LXP will facilitate the delivery of up to an additional 1 Bcf/d to Southeast and Gulf Coast supply markets, giving much needed additional gas carrying capacity to producers in what has been a takeaway-short play. According to this 2017 investor day presentation, the Gulf Coast states include Texas, Louisiana, Arkansas, Mississippi and Alabama.
TransCanada Gulf Coast Demand Metrics
The LXP pipeline comprises 160 miles (257 kilometers) of 36-inch-diameter pipeline, three compressor stations, and modifications to an existing compressor station. The project represents an investment of approximately US$1.6 billion and the pipeline is capable of transporting approximately 1.5 Bcf/d of natural gas.
TransCanada’s Leach XPress Map (2017)
“Successful completion of Leach XPress is a prime example of TransCanada’s North American strategy of connecting prolific and growing supply basins with markets eager to access reliable, reasonably priced sources of energy,” said TransCanada President and CEO Russ Girling.
At peak construction, the LXP employed nearly 5,000 employees and contractors. Similarly, the MXP and GXP are expected to create over 8,000 jobs during peak construction later this year.
FERC up and running again
FERC recently got back to business when enough commissioners were appointed to reach a quorum, back in October 2017. The government agency reviewed and approved MXP and GXP after three years of planning and two years of working with communities and landowners along the projects’ routes.
Once remaining regulatory approvals are obtained, TransCanada plans to begin right-of-way preparation and construction activities on both projects, with an anticipated in-service date in late 2018.
“FERC’s approval of Mountaineer XPress and Gulf XPress allows us to continue delivering on our commitment to create new outlets for our customers, transporting Marcellus and Utica shale gas to key markets in the U.S. and beyond,” said Stanley Chapman III, TransCanada’s executive vice president and president of U.S. Natural Gas Pipelines. “Our project teams are prepared to begin construction on both projects.”
The MXP and GXP projects consist of combined infrastructure investments of US$3.2 billion. MXP will deliver approximately 2.6 Bcf/d of gas to the TCO Pool and Leach markets on the Columbia Gas Transmission System through the construction of 170-miles (274 kilometers) of 36-inch pipeline, three new compressor stations and upgrades to three existing compressor stations.
TransCanada acquired several natural gas assets in the United States, including the Hickory Bend Gathering System and Cryogenic Processing Plant, in Ohio, as part of the Columbia Pipeline Group acquisition in 2016.
GXP will transport approximately 0.8 Bcf/d to Southeast and Gulf Coast supply markets through the construction of seven new compressor stations, and upgrades to one existing compressor station, along TransCanada’s existing Columbia Gulf System.
TransCanada has FERC Certificate Orders for all major Appalachian growth projects associated with its 2016 acquisition of Columbia Pipeline Group.
