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Southeast Supply Gets OK to Operate Rest of Line

Just days after Southeast Supply Header LLC (SESH) placed 213 miles of its 270-mile pipeline into operation, FERC last Tuesday gave the company the green light to put the remaining 53 miles of the line in service. The pipeline will provide Texas, Louisiana and other producers with an outlet to Southeast and Northeast natural gas markets.

On Sept. 6 SESH, a joint venture of Spectra Energy and CenterPoint Energy Gas Transmission, began service on the 213-mile segment that extends from CenterPoint's Perryville Hub in northeast Louisiana to an interconnection with Florida Gas Transmission (FGT) in Mississippi (see NGI, Sept. 8). The Federal Energy Regulatory Commission then moved quickly to approve SESH's request to place the remaining 53 miles of the pipeline in service from the FGT interconnect to the Gulfstream Natural Gas System in Coden, AL.

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

SESH will interconnect with several interstate natural gas pipelines along its route, providing opportunities for the prolific Barnett Shale and Bossier Sands supply to reach Southeast and Northeast markets as well as several storage facilities.

"This new onshore natural gas supply represents an important step toward meeting the energy demands in the Southeast United States, and offers greater supply diversity for a region traditionally and predominantly supplied by offshore natural gas from the Gulf of Mexico," said the two companies in a joint statement. "The timing of this additional supply is vital as weather-related effects to offshore production continue to pose a challenge to getting needed supply to these high-demand markets."

SESH will carry up to 1.14 Bcf/d from the Perryville Hub in Louisiana to interconnecting pipelines serving eastern U.S. markets. The 36- and 42-inch diameter pipeline spans three Gulf Coast states, and includes laterals in Mississippi and Alabama, and three mainline compressor stations in Mississippi and Alabama. Customers signed up for capacity on SESH include Florida Power and Light, Progress Energy, Southern Co., Tampa Electric and EOG Resources.

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