popular articles

Southern Star: A New Station to Meet Growing Natural Gas Demand in the Midwest

Faced with rising natural gas demand in Missouri and Kansas, Southern Star plans to build a 6,091-horsepower compression station to improve its transport capacity, addressing the needs of local markets and public utilities.

Please share:

Southern Star Central Gas Pipeline has submitted a request to the Federal Energy Regulatory Commission (FERC) for authorization to expand its natural gas transportation capacity through a compression station project. This initiative aims to meet the growing natural gas demand in Missouri and Kansas, particularly in key areas like Springfield, Joplin, Kansas City, and Topeka.

The project, named Cedar Vale Compressor Station Project, includes the construction of a 6,091-horsepower compression station in Osage County, Oklahoma. According to Southern Star, this new infrastructure will add approximately 98,000 dekatherms per day (Dt/d) of firm capacity in the market delivery area and 35,000 Dt/d of incremental capacity in the production area.

Energy Context and Regional Needs

The increased demand for natural gas is directly linked to the ongoing energy transition in the region. Many coal-fired power plants are nearing the end of their lifecycle and are being replaced by natural gas facilities, which offer advantages in terms of efficiency and costs. Matt McCoy, Director of Commercial Services at Southern Star, emphasized that this shift is a logical response to the obsolescence of coal infrastructure, which would require substantial investments for modernization.

Supply and Logistics

The project will rely on Southern Star’s Straight Blackwell line, which connects Texas County (Oklahoma) to the Blackwell Compressor Station in Kay County (Oklahoma). The gas supply will primarily come from the SCOOP/STACK plays, the Woodford Shale, and the Permian Basin. While Southern Star is not directly connected to the Permian, flows from this basin are transported via interconnected pipelines.

Shipper Commitments and Price Impacts

After a binding open season phase, Southern Star signed agreements with shippers securing approximately 88,000 Dt/d of incremental capacity in the market area and 20,000 Dt/d in the production area. An additional open season period is ongoing for the remaining capacity, with a deadline set for January 31.

This initiative also addresses shippers’ concerns about price volatility during winter storms. For instance, Southern Star Texas-Oklahoma-Kansas spot prices nearly reached $30 per MMBtu in December 2022, and extreme spikes were recorded during the 2021 winter storm, reaching up to $623/MMBtu.

Next Steps

The project is currently awaiting FERC approval, with an intervention period open until December 24. If approved, it will significantly strengthen the region’s energy infrastructure while ensuring greater price stability amid fluctuating demand and extreme weather conditions.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Diaco Aviki succeeds Thomas King at the helm of Woodway Energy Infrastructure amid expansion of its natural gas infrastructure in Texas.
Brussels announces a full exit from Russian gas by the end of 2027, despite a remaining 9% dependency and pressure on the global liquefied natural gas market.
Brussels announces a full exit from Russian gas by the end of 2027, despite a remaining 9% dependency and pressure on the global liquefied natural gas market.
US-based SiEnergy strengthens its footprint around Houston by acquiring Hughes Gas Resources, an EPCOR subsidiary, for $60mn, expanding its natural gas asset portfolio.
US-based SiEnergy strengthens its footprint around Houston by acquiring Hughes Gas Resources, an EPCOR subsidiary, for $60mn, expanding its natural gas asset portfolio.
US-based Commonwealth LNG has secured a 20-year supply agreement for 1 million tonnes of LNG per year with a major Asian company, reinforcing the development of its Louisiana terminal.
US-based Commonwealth LNG has secured a 20-year supply agreement for 1 million tonnes of LNG per year with a major Asian company, reinforcing the development of its Louisiana terminal.
Driven by economic growth and renewable energy limitations, natural gas consumption in Southeast Asia is expected to nearly double by 2050, according to Wood Mackenzie.
Egypt signed a memorandum with ExxonMobil to restart natural gas exploration in the Mediterranean on the Cairo and Masry blocks amid a sharp decline in domestic production.
Egypt signed a memorandum with ExxonMobil to restart natural gas exploration in the Mediterranean on the Cairo and Masry blocks amid a sharp decline in domestic production.
Golar LNG finalised long-term charter agreements with Southern Energy S.A. for two FLNG units offshore Argentina, generating a projected order backlog of $13.7bn.
Golar LNG finalised long-term charter agreements with Southern Energy S.A. for two FLNG units offshore Argentina, generating a projected order backlog of $13.7bn.
Brazil's gas market shifts toward spot contracts, driven by pricing gaps and greater contractual flexibility for local distributors.
Brazil's gas market shifts toward spot contracts, driven by pricing gaps and greater contractual flexibility for local distributors.
Ukraine will receive a €270 million loan from the European Bank for Reconstruction and Development, backed by a Norwegian grant, to secure gas imports over two winters.
The natural gas-to-electricity project led by CH4 Systems with several partners has been recognised by the Export-Import Bank of the United States for its energy and economic impact in Guyana.
The natural gas-to-electricity project led by CH4 Systems with several partners has been recognised by the Export-Import Bank of the United States for its energy and economic impact in Guyana.
Bp awards a contract valued between $150mn and $300mn to Subsea Integration Alliance to develop the offshore Ginger field under a new global framework agreement.
Bp awards a contract valued between $150mn and $300mn to Subsea Integration Alliance to develop the offshore Ginger field under a new global framework agreement.
OQ Trading has signed a long-term sales agreement with Amigo LNG in Mexico to purchase 0.6 million tonnes of liquefied natural gas annually, with deliveries scheduled to begin in 2028.
OQ Trading has signed a long-term sales agreement with Amigo LNG in Mexico to purchase 0.6 million tonnes of liquefied natural gas annually, with deliveries scheduled to begin in 2028.
Russian attacks on Ukrainian gas infrastructure have halved national production, pushing Kyiv to seek alternative import sources to secure winter supply.
Woodside approves the development of a 16.5 Mtpa LNG facility in Louisiana, marking a key milestone in its global expansion strategy with production targeted for 2029.
Woodside approves the development of a 16.5 Mtpa LNG facility in Louisiana, marking a key milestone in its global expansion strategy with production targeted for 2029.
JERA and Saibu Gas have reached an agreement to jointly use the Hibiki LNG terminal to secure liquefied natural gas supply and support their global business development.
JERA and Saibu Gas have reached an agreement to jointly use the Hibiki LNG terminal to secure liquefied natural gas supply and support their global business development.
Calpine and ExxonMobil have signed an agreement to transport and store up to 2 million tonnes of CO2 per year from a natural gas power plant near Houston.
Calpine and ExxonMobil have signed an agreement to transport and store up to 2 million tonnes of CO2 per year from a natural gas power plant near Houston.
Ecopetrol is developing a strategy to ensure the continuity of its offshore gas projects in the Caribbean following Shell's strategic withdrawal.
The United States extends until June 27 the suspension of sanctions targeting NIS, the Serbian energy company controlled by Gazprom, providing strategic relief to gas-dependent Serbia.
The United States extends until June 27 the suspension of sanctions targeting NIS, the Serbian energy company controlled by Gazprom, providing strategic relief to gas-dependent Serbia.
Saudi Arabia plans to reduce its reliance on oil for electricity generation by using more natural gas. This change could free up to 350,000 barrels of crude per day by 2030.
Saudi Arabia plans to reduce its reliance on oil for electricity generation by using more natural gas. This change could free up to 350,000 barrels of crude per day by 2030.
The Miami-based liquefied natural gas (LNG) provider announces its name change, marking its expansion into energy solutions while consolidating its commitment to reliable and affordable LNG solutions.
The Miami-based liquefied natural gas (LNG) provider announces its name change, marking its expansion into energy solutions while consolidating its commitment to reliable and affordable LNG solutions.
Woodside has signed LNG sale and purchase agreements with Uniper, securing the supply of 2 million tonnes per year, confirming strong global demand for LNG.
Baker Hughes posted strong quarterly results, driven by a 9% increase in orders for its Industrial & Energy Technology division, despite a 50% drop in cash flow during the same period.
Baker Hughes posted strong quarterly results, driven by a 9% increase in orders for its Industrial & Energy Technology division, despite a 50% drop in cash flow during the same period.
Malaysia LNG is progressively resuming operations following an unexpected shutdown of key modules at Bintulu due to a boiler malfunction, raising questions about the impacts on Asian and international liquefied natural gas markets.
Malaysia LNG is progressively resuming operations following an unexpected shutdown of key modules at Bintulu due to a boiler malfunction, raising questions about the impacts on Asian and international liquefied natural gas markets.
French group GTT anticipates growing demand for LNG tankers following the revival of liquefied natural gas terminal projects in the United States under President Donald Trump’s leadership.
French group GTT anticipates growing demand for LNG tankers following the revival of liquefied natural gas terminal projects in the United States under President Donald Trump’s leadership.

Advertising