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Gulf South Has Southeastern Expansion Plans

Boardwalk Pipeline Partners LP subsidiary Gulf South Pipeline Co. LP said it is testing market interest in about 700,000 Dth/d of new firm transportation capacity on a proposed 89-mile, 36-inch diameter expansion project that would serve markets in the Southeast.

The Southeast Expansion Project would deliver gas from the Jackson, MS, area to Florida markets, to other pipelines serving the East Coast and to storage facilities. As part of this project, Boardwalk has negotiated an agreement with Destin Pipeline to lease capacity on Destin's system as an integral part of its Southeast Expansion Project.

The 89 mile extension would interconnect with Destin in Clarke County, MS. From there, gas would be transported using Gulf South's leased capacity on Destin to Florida markets through interconnects with Florida Gas Transmission and Gulfstream pipelines. In addition, this project would provide additional supplies to customers in the Northeast and other Southeast markets, through interconnects with Tennessee Gas Pipeline, Transcontinental Gas Pipe Line, and Southern Natural Gas.

During the open season, Gulf South is also soliciting customer interest in constructing a 36-mile lateral from the Gulf South and Destin interconnect eastward to Transco's system near Station 85, located in Choctaw County, AL.

After signing agreements with anchor shippers, Gulf South recently announced that it was increasing the size of its Mississippi and East Texas expansions to transport 1.5 Bcf/d of gas from the Barnett Shale and Bossier Sands production plays in Texas to the Perryville Hub in Louisiana and then to Jackson, MS. Gulf South already has initiated the pre-filing process at the Federal Energy Regulatory Commission for the two projects.

The Southeast Expansion Project would facilitate movement of that gas farther east into the interstate pipeline grid. This project also would provide Florida markets access to reliable onshore gas supplies, Boardwalk said. The Southeast Expansion capacity is expected to be in-service during the first half of 2008.

"Gulf South continues to receive strong market support for its expansion projects," said Rolf Gafvert, co-president of Boardwalk. "A positive market response during this open season would allow us to construct new capacity to serve customers in Southeast markets such as Florida as well as giving shippers additional access to interstate pipelines serving customers in the Northeast and southeastern parts of the United States. This expansion further reinforces the strong presence of Boardwalk Pipeline Partners as we continue to meet the needs of producers and end-users in the marketplace."

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