The US Federal Energy Regulatory Commission (FERC) has issued an order approving the construction of the Leach XPress and Rayne XPress projects developed by Canadian energy infrastructure operator TransCanada.
TransCanada plans to invest $1.8bn in the projects, including $1.4bn in Leach XPress and $400m in Rayne XPress. Leach XPress will transport around 1.5 bcf/d (42 mcm/d, i.e. more than 15 bcm/year) of gas from the Marcellus and Utica supply basin to higher-value Midwest and Gulf Coast markets, stretching over 257 km. The Rayne XPress project involves the construction of two new compressor stations along TransCanada's existing Columbia Gulf system and is designed to create an additional 1 bcf/d (28 mcm/d, i.e. more than 10 bcm/year) of capacity to efficiently transport Marcellus and Utica production to markets in the Gulf Coast region and beyond.
Both projects are underpinned by long-term, fixed-fee, firm transportation service agreements. Once remaining regulatory approvals are obtained, TransCanada plans to begin preparation and construction activities on both projects in February 2017, to commission them in November 2017.