FERC approves Midcontinent Express Pipeline

The Federal Energy Regulatory Commission said it has approved the construction and operation of a 506-mile natural gas pipeline.

The $1.27 billion Midcontinent Express Pipeline, a joint venture between petroleum pipeline and storage company Kinder Morgan Energy Partners LP and propane and natural gas company Energy Transfer Partners LP, would move natural gas through Oklahoma, Texas, Louisiana, Mississippi and Alabama.

The pipeline would transport up to 1.5 billion cubic feet of gas per day to customers in Southern and Eastern markets. It includes new 30-, 36- and 42-inch diameter pipe, a booster and four new mainline compressor stations.

Construction is scheduled to begin this summer with plans to have the pipeline in service by March 2009.

Plans call for Midcontinent to lease up to 272,000 billion cubic feet per day of capacity on the Oklahoma intrastate system of Enogex Inc.

The energy commission said it will impose 40 conditions on the pipeline to mitigate any potential adverse impact on the environment.

Kinder Morgan shares rose 49 cents to $57.76 in midday trading, while Energy Transfer Partners shares rose 50 cents to $40.67.