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Sempra's Proposed Port Arthur Pipeline Holds Open Season

A unit of San Diego-based Sempra Energy, Port Arthur Pipeline LP, launched an open season to seek market interest in capacity on its proposed pipeline project that is scheduled to be operational in the 2008-09 winter heating season in conjunction with Sempra's Gulf Coast LNG terminals starting commercial operations.

Nonbinding requests for service must be submitted no later than April 4. "Results of the open season will be evaluated and potential shippers contacted regarding project specifics by May 16," the Sempra Pipelines & Storage unit said. Prospective shippers will be able to indicate their interest for capacity volumes and delivery points. The project capacity may be expanded depending on the interest generated.

"Because Port Arthur Pipeline is being designed to connect such a large amount of interstate pipeline capacity, shippers using it will get a high level of reliability, flexibility and liquidity," said George Liparidis, president of Sempra P&S.

The pipeline project envisioned would interconnect the area of eastern Texas and southern Louisiana where several LNG import terminals are being developed to tap into the interstate natural gas pipeline network. There are also potential intrastate pipeline interconnections, Sempra P&S said in its announcement.

Sempra estimated that total interconnection capacity for its proposed pipeline exceeds 5 Bcf/d in the area of Transco Compressor Station 45, and would exceed 10 Bcf/d if extended to the Columbia Gulf mainline. It also will have direct access to the Liberty Gas Storage project being developed by Sempra P&S.

Potential customers interested in participating in the open season should contact Laurie Fitzmaurice at (619) 696-2698.

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