Overview
Texas Gas is an interstate pipeline that moves natural gas from Gulf Coast supply areas to more distant on-system markets in the Midwest and to off-system markets in the Northeast via interconnections with third-party pipelines. It originates in the Louisiana Gulf Coast area and in East Texas and runs north and east through Louisiana, Arkansas, Mississippi, Tennessee, Kentucky, Indiana, and into Ohio, with smaller diameter lines extending into Illinois.
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Pipeline and Storage Facilities
The Texas Gas system is composed of:
Approximately 5,850 miles of pipeline, having a peak-day delivery capacity of approximately 3.8 billion cubic feet (Bcf) per day which includes deliveries to pipeline interconnects in South Louisiana;
31 compressor stations having an aggregate of approximately 552,000 horsepower; and
Nine natural gas storage fields located in Indiana and Kentucky, having aggregate storage capacity of approximately 180.0 Bcf of gas, of which approximately 72.0 Bcf is designated as working gas.
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Markets Served
Texas Gas’s direct market area encompasses eight states in the southern and midwestern United States and includes the Memphis, Tennessee; Louisiville, Kentucky; Cincinnati and Dayton, Ohio; and Evansville and Indianapolis, Indiana metropolitan areas. Texas gas also has indirect market access to the Northeast through interconnections with unaffiliated pipelines.
Gas Supply
Prior to the expansion projects, the principal sources of supply for Texas Gas were:
Regional supply hubs and market centers: offshore Louisiana; Perryville, Louisiana; Henry Hub; Agua Dulce; and Carthage, Texas;
Wellhead supplies: East Texas, northern and southern Louisiana and Mississippi; and
Canadian natural gas through a pipeline interconnect with Midwestern Gas Transmission Company at Whitesville, Kentucky.
Part of the Boardwalk System
Texas Gas (shown below in red) is a wholly-owned subsidiary of Boardwalk Pipeline Partners, LP (NYSE: BWP), a master limited partnership engaged through its subsidiaries in the interstate transportation and storage of natural gas. Boardwalk owns another interstate natural gas pipeline system called Gulf South Pipeline Company, LP (shown below in blue). Gulf South Pipeline is a “web-like” interstate natural gas pipeline system that gathers gas from basins between Texas and Alabama and delivers it to on-system markets within its footprint and to off-system markets in the Northeast and Southeast through interconnections with third-party pipelines.
Boardwalk has also formed a third subsidiary, Gulf Crossing Pipeline Company LLC (not pictured below) to operate the new Gulf Crossing interstate pipeline scheduled for completion by the first quarter 2009.
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