Gulf South Proposes 1 Bcf/d Interstate Line to Carolinas

Gulf South Pipeline Co. LP, formerly Koch Gateway Pipeline, has begun an open season for 1 Bcf/d of new capacity on its Gulf Pines Pipeline project that would provide interstate transportation service to parts of the North and South Carolina markets that currently aren't being served by competitors.

This proposed interstate line, which would serve both traditional load and the expanding power generation markets, would extend further east into the Carolinas than any existing interstate pipeline, tapping into virgin territory, said Gulf South spokesman Marc Palazzo, It "would bring interstate pipeline [service]...to a region that historically has not had that service" before, he noted.

The 7 Bcf/d Transcontinental Gas Pipe Line is the only interstate pipeline currently serving the Carolinas, transporting gas to the westernmost parts of the states, as well as to the Mid-Atlantic and Northeast markets.

The open season began Friday and will close on Sept. 19 for capacity on the proposed 600-700 mile, 36-inch diameter or greater pipeline, which would originate near Mobile Bay, AL, and extend in an southeasterly direction through Georgia, South Carolina and North Carolina.

The actual route of the proposed pipeline would not be determined until after the open season, Palazzo noted. Gulf South said it would accept both binding and non-binding nominations during the open season.

Given the growth in population, "we expect that the demand for natural gas in the southeastern portion of the United States will increase significantly during the next decade. We look forward to providing a competitive alternative to the growing power generation, commercial and residential markets in the region in the future," said Gulf South President Rolf Gafvert.

The Gulf Pines project would interconnect with Gulf South near Mobile Bay, enabling customers to access not only Mobile Bay supplies, but also gas supplies from Texas and Louisiana, including Venice and the Henry Hub, according to Gulf South, a subsidiary of Entergy-Koch L.P. The proposed pipeline also would have access to multiple third-party storage facilities, such as Gulf South's facility in Bistineau.

The Gulf Pines pipeline project has been targeted for in service in the summer of 2004. Palazzo said a project application would be filed at the Federal Energy Regulatory Commission within a year.

The Gulf South existing system is comprised of 8,800 miles of pipeline, making it the largest interstate gas system in the Gulf Coast region. It runs from Texas through the Gulf Coast states and into the Florida market.

For more information on the Gulf Pines Pipeline project, contact John Boone, senior vice president of marketing, at (713) 544-4315, Rich Cain, vice president of marketing, at (713) 544-5067, or visit the project web site at www.gulfpinespipeline.com.

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