Boardwalk Pipeline Partners LP said subsidiary Gulf South Pipeline has signed binding precedent agreements with customers to transport 1.6 Bcf/d of gas to an interconnection at Transcontinental Gas Pipe Line's Station 85 in Choctaw County, AL. The committed capacity includes 560 MMcf/d to be transported from the Perryville, LA and Harrisville, MS areas to Station 85 on the Southeast Expansion project and 1 Bcf/d from various receipt points in Texas and Oklahoma to Station 85 on the Gulf Crossing Pipeline project.
The Southeast Expansion, which already has been filed with regulators, would be an extension of the Gulf South system. It would consist of 110 miles of 42 inch diameter pipeline beginning near Harrisville and terminating at Station 85. Boardwalk said it expects the project to be in service in early 2008.
The $1.1 billion Gulf Crossing pipeline would include 355 miles of new interstate line and would be certificated initially to carry about 1.65 Bcf/d from the Sherman, TX, Bennington, OK and Paris, TX supply areas to the Perryville Hub. The project includes leased space on the Enogex system in Oklahoma and leased capacity on Gulf South's Southeast Expansion to complete deliveries to Station 85 (see Daily GPI, Dec. 18). Subject to approvals, Gulf Crossing could be in service in the fourth quarter of 2008.
In addition to the binding agreements it received, Boardwalk said foundation shippers on Gulf Crossing also have an option to commit for an additional 350 MMcf/d of capacity, which would increase the committed capacity to 2 Bcf/d. Crosstex Energy LP said last month that it agreed to be a foundation shipper on Gulf Crossing with a 10-year agreement for 150,000 Dth/d (see Daily GPI, Nov. 20). Crosstex said it will expand its 24-inch diameter North Texas Pipeline (NTPL) system, which is upstream of Gulf Crossing, in the first quarter of 2007 to a total capacity of 375,000 MMBtu/d. NTPL began to serve customers in April 2006. It will interconnect with Gulf Crossing in Lamar County, TX.
Enterprise and Devon Energy, the largest Barnett Shale producer, recently also agreed to be foundation shippers on Gulf Crossing with 850 MMcf/d of the proposed capacity under 10-year contracts and options for an additional 350 MMcf/d (see Daily GPI, Nov. 13).
Anticipating further demand, Gulf Crossing also has started a binding open season for an expansion project.
"The Gulf Crossing open season has generated significant interest from shippers," said Brian Cody, vice president of business development for Boardwalk. "Depending on the ultimate results of the open season, we may expand the design capacity of the Gulf Crossing and/or Southeast Expansion facilities to make additional deliveries to Transco Station 85. Based upon the interest expressed during its open season, and in light of the upcoming holidays, Gulf Crossing is extending the open season until Jan. 15, 2007."
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