The Federal Energy Regulatory Commission has approved the Rayne Xpress Pipeline to begin shipping Marcellus and Utica shale natural gas to the Gulf Coast, Kallanish Energy reports.
The project required adding compressor stations in three Kentucky counties to boost capacity by 1 billion cubic feet per day (Bcf/d).
The pipeline runs from Rayne, La., north to Leach, Ky. FERC approved the service in a decision posted last week. The project was initially developed by Columbia Gas Transmission, now part of TransCanada.
The project will work in conjunction with the not-yet-complete Leach Xpress Pipeline in southeastern Ohio and northern West Virginia.
The Leach Xpress will cost $1.4 billion and includes 160 miles of pipeline to move 1.5 Bcf/d of natural gas.
The two projects together will cost $1.8 billion. Both projects are supported by long-term, fixed-fee, firm transportation agreements.