Scana’s South Carolina Pipeline Corp. announced Wednesday itplans to build an interstate pipeline running from South Carolinato North Carolina, and in the process held no punches on promotingits pipeline over the proposed Carolina Light and Power(CP&L)/Sonat Palmetto Pipeline project. Scana did not releasedetails of its proposal, but did say formal descriptions will beannounced in the coming weeks.

“Our interstate pipeline project is a superior alternative tothe proposed Palmetto Pipeline and will continue South CarolinaPipeline’s long-established, responsible support for economicdevelopment in South Carolina while providing a second source ofgas service into North Carolina,” said Berry Gibbes, president ofSouth Carolina Pipeline.

The announcement comes two days after the Palmetto Pipelineannounced an open season for potential customers seeking servicefrom the pipeline for at least 20-year terms (See Daily GPI, April13). Gibbes said the South Carolina proposal will give shippers amore flexible and reasonably priced alternative before Palmetto’sopen season expires on May 31.

“We recommend that any gas shipper who may be consideringsubscribing to firm capacity on the proposed Palmetto PipelineProject wait to compare our alternative interstate pipeline beforebeing locked into a more costly service for up to 20 years,” Gibbessaid.

CP&L was not surprised by Scana’s comments. “This is Scana’sfirst experience with competition in this environment,” saidCP&L spokesman Mike Hughes. “The fact that there has been nocompetition in this market is being proved by the considerableinterest we have gotten during the first days of Palmetto’s openseason. Additionally, CP&L will account for a large portion ofPalmetto’s capacity, maybe as much as half of its initial capacity.That is a reason to build a pipeline. There is still a considerablequestion as to what will make Scana’s project economically viable.”

South Carolina Pipeline currently operates a 1,900-mileintrastate pipeline transmission system that supplies gas tocustomers throughout much of South Carolina. It has directconnections with both the Transco and Sonat systems. Over the pastthree years, the company said it spent $50 million in systemupgrades.

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