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CenterPoint Tests Market for More Carthage-to-Perryville Capacity

CenterPoint Energy Gas Transmission said it will hold an open season for a third-phase expansion of its proposed 172-mile pipeline to Perryville, LA, from Carthage, TX. The company said it is responding to continuing market interest in pipeline capacity to transport gas from the Barnett Shale and Bossier Sands plays in East and North Texas.

The nonbinding 30-day open season, which will end May 26, will gauge market interest in an expansion of the 1.2 Bcf/d pipeline that CenterPoint already has filed to build from Carthage to Perryville in northeastern Louisiana (see NGI, March 27, Oct. 31, 2005). CEGT said it could increase capacity in a third phase of construction by adding compression and/or pipeline looping.

In March, CEGT filed an application with the Federal Energy Regulatory Commission to build the pipeline, which is fully subscribed. It would be constructed in two phases, and the company expects an in-service date of early 2007 for the 963,000 Dth/d phase I, with the remaining capacity being in-service in the summer of 2007 for phase II.

"We have experienced tremendous participation in our Carthage-to-Perryville project and continue to receive expressions of interest in additional capacity," said John Haynes, CEGT's vice president of business development. "Pending market interest, our plan is to move quickly to execute binding precedent agreements and place this third phase of the project in service by the fall of 2007."

Meanwhile, CenterPoint and Duke Energy Gas Transmission have teamed up to propose a downstream pipeline, the Southeast Supply Header, that would take gas from Perryville to the Gulfstream Natural Gas System, which crosses the Gulf of Mexico to serve the Florida peninsula. The proposed 250-mile system was announced last fall and an open season yielded promising results in January (see NGI, Nov. 17, 2005; Feb. 6). The 1 Bcf/d pipeline is expected to be in service in mid-2008.

For additional information on the phase-three open season, visit the CEGT website at pipelines.centerpointenergy.com/cegt.html.

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