Gulf South Pipeline Co. LP is targeting growing industrial demand in the Baton Rouge-New Orleans, LA, region with a potential expansion of its system that would tap shale gas supplies from multiple basins. The project joins another targeting a similar market from rival Spectra Energy Transmission.
The pipeline is holding an open season through Oct. 18. Gulf South is directly connected to shale gas supplies in Louisiana and Texas, along with traditional gas supplies in the Louisiana-Texas Gulf Coast region. Through interconnections with affiliate and third-party pipelines, Gulf South's customers are able to access gas from Arkansas, Texas, Oklahoma and the Marcellus Shale through Gulf South' s Perryville Exchange or interconnects at Kosciusko, MS.
Last year, Gulf South launched its Perryville Exchange Service at the Perryville Hub in Louisiana (see Daily GPI, Feb. 9, 2012) with the intent that, along with a system expansion, it would streamline delivery of gas to power generators in the Southeast (seeDaily GPI, July 5, 2012).
In order to serve the growing industrial natural gas markets, Gulf South is proposing an expansion of its system that will connect these supplies to markets in the Baton Rouge to New Orleans River Corridor for service commencing in 2016 and 2017 (the New Orleans River Corridor Expansion Project).
Gulf South, a Boardwalk Pipeline Partners LP subsidiary, said it will determine whether to proceed with the New Orleans River Corridor Expansion Project and the size of such project by Dec. 18.
Late last month, Spectra Energy Transmission's Texas Eastern Transmission announced an expansion to serve industrial markets in South Louisiana by Spring 2015 with shale gas supplies from multiple basins. An open season for this project is scheduled to end Friday (see Daily GPI, Aug. 27). The project would give South Louisiana markets access to gas from the Marcellus, Utica, Fayetteville, Haynesville, Woodford, Barnett and Eagle Ford shales, as well as traditional Gulf of Mexico and Gulf Coast production.