TransCanada commissions $1.6bn Leach Xpress pipeline in US

TransCanada has commissioned its $1.6bn, 60-mile Leach XPress (LXP) natural gas project in the US.

The pipeline is capable of transporting around 1.5 billion cubic feet of natural gas a day (bcfd).

Comprising 160 miles of 36-inch diameter pipeline and three compressor stations, the project will enable the delivery of up to an additional 1bcfd to Southeast and Gulf Coast supply markets in the US.

The project connects the Appalachian natural gas supply to the US markets.

TransCanada president and CEO Russ Girling said: “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.”

In a separate development, the company has received a certificate of public convenience and necessity from the Federal Energy Regulatory Commission (FERC) for its Mountaineer XPress (MXP) and Gulf XPress (GXP) projects.

Subject to the receipt of remaining regulatory approvals, TransCanada plans to begin preparation and construction activities on both projects, in an effort to bring them into service later this year.

TransCanada executive vice-president Stanley Chapman III said: “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 US and beyond.”

Together, the MXP and GXP projects are expected to cost $3.2bn.

The MXP project involves the construction of 170 miles of 36-inch pipeline, three new compressor stations and upgrades to three existing compressor stations.

It is expected to deliver around 2.6bcfd of gas to the TCO Pool and Leach markets on the Columbia Gas Transmission System, while GXP is designed to transport about 0.8bcfd to Southeast and Gulf Coast supply markets.