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Southeast Supply Header Cleared for Start-Up

FERC Friday gave Southeast Supply Header LLC (SESH) the green light to begin service over its new pipeline facilities extending from northeast Louisiana to an interconnection with Florida Gas Transmission (FGT) near the Mississippi-Alabama line.

The go-ahead from the Federal Energy Regulatory Commission (FERC) came one day later than SESH had requested. SESH had urged the the Commission to issue an order by no later than Thursday so shippers could nominate service as early as Friday. It told the agency that the remaining portion of the SESH pipeline to an interconnect with Gulfstream Natural Gas System is expected to be completed later this month.

The schedule for the remainder of the facilities up to the Gulfstream delivery point will be defined once the impact of Hurricane Gustav is better known, according to SESH. It said commissioning activities will continue for the first few weeks after the in-service date and may impact available capacity from time to time. In addition, subject to receiving approval from the Department of Transportation to operate under its special permit, SESH said it will operate at less than design capacity.

SESH, a joint venture of Spectra Energy and CenterPoint Energy Gas Transmission, will carry up to 1.14 Bcf/d from the Perryville Hub in Louisiana to interconnecting pipelines serving eastern U.S. markets and terminate at the Gulfstream interconnect near southern Mobile County, AL. The new line will tap supplies from the Barnett Shale and Bossier Sands, as well as regasified liquefied natural gas coming into the Gulf Coast.

The project includes about 270 miles of 36- to 42-inch diameter pipeline spanning three Gulf Coast states; laterals in Mississippi and Alabama; three mainline compressor stations in Mississippi and Alabama; and other associated facilities (see NGI, Sept. 21, 2007). Customers signed up for capacity on the SESH include Florida Power and Light, Progress Energy, Southern Co., Tampa Electric and EOG Resources.

SESH will link the onshore natural gas supply basins of East Texas and North Louisiana to Southeast markets now predominantly served by offshore natural gas supplies from the Gulf of Mexico. This pipeline will give customers an important alternative to offshore supply, which can be vulnerable to weather-related disruptions, according to the company.

Along its route, SESH will interconnect with several interstate natural gas pipelines, providing opportunities for supply to reach Southeast and Northeast markets as well as several storage facilities.

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