The Carolinas are calling out for gas and so far three partieshave answered.

First came the Palmetto Pipeline project, a joint venture ofCarolina Power &amp Light (CP&ampL) and Sonat. Next came Scana’sSouth Carolina Pipeline Corp. with a Carolinas proposal. And lastbut not least is Williams-Transco with a proposed expansion calledSundance.

Williams last week announced an open season through June 1 forannual firm service to be created by Transco’s Sundance. Theexpansion would serve growing Southeast power generation,residential and commercial markets and be in service by April 2002.Sundance would expand the Transco system from Station 65 inLouisiana to Station 165 in Virginia.

Williams said Sonat’s Sundance expansion is positioned to serveCP&ampL’s recently announced gas-fired power plants, as well asfacilities providing gas to eastern North Carolina. Williamsrecently said it wants to work with the Albermarle Regional EnergyAuthority (AREA) to serve several counties in eastern NorthCarolina that have not previously had gas service (see NGI April12, 1999). Williams has proposed to jointly develop with AREAtransmission and distribution facilities to serve North Carolinacounties Camden, Currituck, Chowan, Pasquotank, and Perquimans.Williams plans to apply for a portion of $200 million in bond fundsNorth Carolina is making available to foster gas infrastructuredevelopment.

“We believe that the Sundance Project will provide a morecost-effective and reliable means of serving the growing powergeneration markets in Alabama, Georgia, the Carolinas and southernVirginia than any proposed greenfield pipeline project,” said CubaWadlington Jr., general manager Williams Gas Pipeline-Transco.”Also, we expect this project will create opportunities to expandlocal infrastructure, including the Cardinal Pipeline in NorthCarolina and local distribution systems along the Transco system,in order to optimize the utilization of these facilities. This willultimately benefit both electric and natural gas consumersresulting in lower costs and encouraging economic development withminimal impact to the environment.”

Shippers may elect to subscribe to capacity from Station 65 inTransco’s Zone 3 or certain receipt points in Zone 4. Transco saidit intends to seek rolled-in rate treatment for project costs.

Meanwhile, Scana subsidiary South Carolina Pipeline Corp.announced plans last week to build an extension off of its existing1,900-mile intrastate line into North Carolina. The existing linecurrently supplies gas to customers throughout much of SouthCarolina and has direct connections with both the Transco and Sonatsystems.

The Palmetto Pipeline, with an open season running through May31, is the one that started it all. The project has the backing ofCP&ampL, which plans to subscribe for a substantial portion of the200 to 300 MMcf/d of proposed capacity. Sonat plans to expand itssystem to accommodate Palmetto’s growth in the form of additionallooping and compression.

Sonat spokesman Bruce Connery said the challenge from Scana andSundance was not unexpected. “It comes as no surprise. It’s what wefully expected to see. Obviously, these companies view the Palmettopipeline as a competitive threat, but we still believe our projectis competitive and the market will be able to evaluate itsoptions.”

The word last week from South Carolina Pipeline President BerryGibbes was “Our interstate pipeline project is a superioralternative to the proposed Palmetto Pipeline.. We recommend thatany gas shipper who may be considering subscribing to firm capacityon the proposed Palmetto Pipeline Project wait to compare ouralternative interstate pipeline before being locked into a morecostly service for up to 20 years.”

Williams spokeswoman Amy Kiser touted Sundance’s Virginiaconnection as providing additional support for its project. Tyingin with CP&ampL’s power plants is not critical to the project’ssuccess, she said. “We’re the most economic alternative.”

Joe Fisher, Houston

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