Officials order shutdown of 27 miles of El Paso gas pipeline in Ohio

HOUSTON, Texas - Federal officials have ordered the continued shutdown of 27 miles of natural gas pipeline in Ohio because of repeated problems with welds in the pipe, including one linked to an explosion that leveled several houses on Nov. 16.

The investigation into the cause of a Tennessee Gas Pipeline Co. LLC explosion near Glouster, Ohio, is continuing, according to an order released Nov. 17 by the federal Pipeline and Hazardous Materials Safety Administration (PHMSA).

Authorities said that a visual inspection suggests that the pipeline failed at a weld similar to those that caused problems, including an explosion and fire in northeastern Ohio, in February and March. The high-pressure pipeline, three feet in diameter, runs from Kentucky to Pennsylvania.

"I find that the continued operation of the pipeline without corrective measures would be hazardous to life, property and the environment," wrote Jeffrey D. Wiese, associate administrator for pipeline safety at PHMSA.

Those measures include the shutdown, operating more than 200 miles of the affected line at reduced pressures, performing mechanical and metallurgical tests, and completing an analysis of the root cause of the failure within 60 days.

Gretchen Krueger, a spokeswoman for El Paso Corp., which owns Tennessee Gas, said the company has been working closely with federal authorities since the first report of the Nov. 16 explosion and will fully comply with the order.

Ms. Kruger added the company is in "full compliance with the consent order" imposed after the failures earlier this year and is working to implement corrective measures it required.

El Paso announces MPP project to expand Tennessee Gas PIpeline's 300 line in Pennsylvania

HOUSTON, Texas - El Paso Corp. (NYSE: EP) on Oct. 7 announced that its wholly owned subsidiary, Tennessee Gas Pipeline Co. (TGP), has executed long-term agreements for the MPP project which will expand TGP's 300 Line in Pennsylvania.

The 240,000 dekatherms per day (Dth/d) project includes approximately eight miles of 30-inch pipeline, looping and modifications to four existing compressor stations in Pennsylvania to provide natural gas transportation from the Marcellus Shale supply area to existing delivery points on the TGP system.

All of the capacity is subscribed through agreements with Chesapeake Energy Marketing, Inc., a wholly-owned subsidiary of Chesapeake Energy Corp. for 140,000 Dth/d and Southwestern Energy Services Company, a wholly-owned subsidiary of Southwestern Energy Co., for 100,000 Dth/d.

"We are pleased to announce our fourth expansion project in as many years which brings our total investment in Marcellus infrastructure to $1.3 billion and adds nearly 1.5 Bcf/d of capacity," said Norman Holmes, president of Tennessee Gas Pipeline. "This project leverages TGP's strategic location and provides significant new firm transportation capacity for two prominent Marcellus Shale producers."

Capital for the MPP project is expected to be less than $100 million.

TGP anticipates filing a certificate application for the project with the Federal Energy Regulatory Commission in late 2011. Pending regulatory approvals, construction would begin in 2013, with a Nov. 1, 2013, in-service date.