FERC approves Tennessee certified gas pooling service
SUMMARY
Pooling service designed to enhance production and sale of certified natural gas.
By Dale LunanPOSTED IN:
Tennessee Gas Pipeline Company (TGPC) said July 1 it had received authorisation from the US Federal Energy Regulatory Commission (FERC) to implement a producer certified gas (PCG) pooling service on its system.
The voluntary service, which will be available at all pooling points on the TGPC system, will enable shippers to purchase and sell certified natural gas supply at non-physical pooling locations, serving end-users, utilities, power plants and LNG facilities connected to the TGP system.
“After working closely with producers and customers, we are pleased to offer a PCG aggregation pooling service that meets their needs as they exist today,” said Ernesto Ochoa, TGP’s vice president, commercial. “We believe this positions TGP as a leader in the energy transition because this service facilitates greater transparency and liquidity into markets for this important, lower-emissions energy source.”
Parties who have obtained certifications from qualified third-party organisations, like Equitable Origin or MiQ, will supply the PCG needed for the pooling service, and the supply is expected to grow as PCG becomes the fuel of choice among customers. TGP plans to continue working with producers and customers to refine the service as regulations and markets evolve.
As part of the FERC approval, TCPC will file a report in August 2023 providing detail on the utilisation of the PCG pools compared to non-PCG pools and the volumes of certified gas provided by third parties.
