FERC has given Gulf South Pipeline Co. LP the go-ahead to begin construction on its East Texas-to-Mississippi Expansion Project, which would provide significant takeaway capacity for producers in the prolific Barnett Shale and Bossier Sands trends of East Texas, as well as for the sprouting liquefied natural gas terminals along the Gulf Coast..

The order, which was issued last Monday, allows Gulf South to start building a mainline pipeline in Warren County, MS. The entire project involves the construction of about 242 miles of high-pressure pipeline that would connect Gulf South's existing system in DeSoto Parish in northern Louisiana to its 30-inch diameter pipeline in South-Central Mississippi, as well as the addition of 110,604 hp of new compression.

Gulf South, a subsidiary of Boardwalk Pipelines LLC, plans to install two compressor stations in Ouachita and Madison Parishes, LA, and make upgrades to its Carthage Junction Compressor Station in Panola County, TX [CP06-446].

The $767 million expansion, which was approved by the Federal Energy Regulatory Commission (FERC) in June, would have the capacity to deliver up to 1.7 Bcf/d of gas from the pipeline-constrained production areas in Texas to interconnects with other interstate pipelines for delivery in the Midwest, Northeast and Southeast (see NGI, June 25).

As a result of two open seasons, Gulf South said it has entered into binding precedent agreements with 12 shippers to transport 1.38 Bcf/d.

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