Southern Natural Gas Co. (SNG), a subsidiary of El Paso Corp., said Tuesday it has placed phase one of its Cypress Pipeline project into service. The bulk of the project received permission to begin service from the Federal Energy Regulatory Commission last week (see Daily GPI, April 27).

The new pipeline, which is an expansion of SNG, provides an incremental 220 MMcf/d of takeaway capacity from Elba Island, the company's liquefied natural gas (LNG) facility near Savannah, GA. From Elba Island, the 167-mile pipeline extends the SNG system into southern Georgia and northern Florida and interconnects with the Florida Gas Transmission system near Jacksonville, FL.

This expansion provides increased supplies and new diverse incremental gas sources to growing markets in the Southeast. The project received long-term commitments from BG LNG Services, Progress Energy Florida and the City of Austell, GA, prior to construction.

Phases II and III of Cypress will involve the installation of additional compression between 2008 and 2010. Engineering and procurement activities are currently under way for Phase II. During this phase, compression facilities will be installed to add an additional 116 MMcf/d of capacity starting in May 2008. Phase III, which is scheduled to be in service by 2010, will add an incremental 164 MMcf/d through additional compression.

Phase II facilities are projected to go into operation in May 2009, and would consist of a new 10,350 hp compressor station in Glynn County. Phase III would include nearly 10 miles of 30-inch diameter pipeline loop on Southern's Wrens-Savannah pipelines in Chatham and Effingham counties, and two new 10,350-hp compressor stations in Liberty County, GA, and Nassau County. Southern expects Phase III facilities to go into service in May 2010.

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