Placing into service additional segments of the Rover gas pipeline now completed would unlock 850 MMcf/d of incremental capacity and gas supply, helping to refill natural gas storage, Energy Transfer Partners told the US Federal Energy Regulatory Commission Wednesday.
The comments, in a supplemental filing with FERC, reflect the operator's sense of urgency to meet its contractual schedules.
Whether ETP will get what it wants -- approval by Thursday morning of startup of two laterals, a supply connector line and a section of mainline -- is uncertain.
Amid several spills and other environmental problems during construction, the commission has said FERC's decision on remaining in-service requests will depend on whether the agency is satisfied with Rover's commitments to complete environmental restoration. ETP sought to head off in its latest filing any concerns FERC may have, while also focusing on market needs.
"Given the substantial progress Rover has made toward restoration, and the commitment Rover has made to complete the restoration work, Rover respectfully submits that it is not in the public interest to prevent gas from flowing," ETP said.
"This incremental supply would likely be used to offset the large deficit the nation is facing to replenish storage inventories in preparation for the 2018-2019 heating season."
FERC spokesman Tamara Young-Allen said commission staff were evaluating Rover's request.
"They continue to monitor Rover's restoration efforts and won't make determinations until they feel those restoration efforts are satisfactory," Young-Allen said.
FERC stressed that point in a March letter to Rover in which the agency said remaining in-service requests would depend on FERC's confidence that future restoration will get the proper attention. Multiple Rover laterals have been beset with recurring erosion-control problems, in some cases involving land slips and landslides requiring substantial remediation.
While the company has sought to assure the commission it was pouring resources into repairs and restoration, compliance monitors and inspectors have documented problems along the way. The most recent FERC environmental reports tally 635 noncompliance instances for the project.
On May 10, a FERC official said that restoration had "not satisfied" the terms of Rover's permit at that point, but added that staff expected Rover to take steps toward meeting expectations with improved weather conditions.
For the Burgettstown lateral, which straddles Pennsylvania and Ohio, Rover's latest filing said 34.3% of final cleanup and restoration would be complete by Friday, when some shipper contracts are set to take effect. For the Majorsville lateral, which straddles Ohio and West Virginia, Rover said 18.7% of the final cleanup and restoration would be complete by then.
The operator stressed that it was "fully committed to completing all restoration work" on the timelines it promised.
"However, with construction of pipeline and related facilities now complete, gas on the remaining facilities can begin to flow immediately," ETP said in its filing.
GAS STORAGE LEVELS HAVE BEEN DEPRESSED
In its latest inventory report, the US Energy Information Administration reported that US natural gas in storage stood at 1.629 Tcf for the week ended May 18, 804 Bcf, or 33%, less than the year-ago level of 2.433 Tcf and 499 Bcf, or 23.4%, less than the five-year average of 2.128 Tcf. Gas stocks have shown signs of building, albeit slowly, in recent weeks. EIA is set to update the inventory figures on Thursday.
ETP played up the current storage levels in seeking to push FERC to act quickly on its latest Rover in-service request.
"Record setting cold weather during the 2017-2018 winter heating season resulted in dangerously low storage inventory levels as the nation entered the injection season," the company said.
"Approval of the requested Rover segments would contribute significantly to reducing that storage deficient in advance of the upcoming winter. Being properly prepared in time for the upcoming winter will help maintain reliability and address price volatility, which will benefit consumers in the entire region."
ROVER EAGER TO BRING REST OF CERTIFICATED CAPACITY ONLINE
Rover began initial service on September 1, 2017, bringing about 700 MMcf/d of its certificated capacity online, on a limited path. Since then, Rover has placed additional supply laterals and compressors into service, raising capacity to current levels of around 2 Bcf/d.
Utilization of the pipeline's full 3.25 Bcf/d of capacity will likely hinge on upstream supply laterals entering service as well as downstream deliveries to Vector Pipeline.
Phase 2 of the project, which includes the market zone north segment, is designed to allow stranded US Northeast shale gas to access Vector and be transported to Midwest markets, as well as to the Dawn Hub in Ontario.
