FERC Thursday approved Transcontinental Gas Pipe Line's (Transco) and Florida Gas Transmission's (FGT) joint application to connect the jointly-owned Mobile Bay Lateral with a liquefied natural gas (LNG) import terminal being developed in Pascagoula, MS, as well as proceed with an upstream pipeline project.

The two pipelines got the go-ahead on the "Pascagoula Expansion," which calls for the construction of 15.5 miles of 26-inch diameter pipeline connecting the proposed Gulf LNG Energy LLC Clean Energy terminal to Transco's and FGT's existing Mobile Bay Lateral [CP09-456]. The project would have the capacity to deliver approximately 810,000 Dth/d and would be located in portions of Mobile County, AL, and Jackson County, MS, at the Bayou Casotte portion of the Port of Pascagoula.

"The proposed pipelines are fully subscribed. The proposals will provide market access for supplies from Gulf LNG's terminal and a new source of supply for Florida Gas' and Transco's customers...The Commission finds that the proposals will provide benefits to the market without any identifiable adverse impacts on existing customers, other pipelines, landowners and communities," the Federal Energy Regulatory Commission (FERC) order said.

Angola LNG Supply Services LLC entered into precedent agreements with FGT and Transco for all of the firm capacity on both projects for a term of 20 years at negotiated rates.

The Pascagoula facilities, which received final environmental approval of FERC in April, are targeted for in-service in September 2011, according to the companies (see Daily GPI, April 12).

FGT also got clearance to extend its portion of the Mobile Bay Lateral, which currently runs about 29 miles from from FGT's mainlines near Citronelle, AL, to FGT's Compressor Station 44 in Mobile Bay, AL. FGT proposes to build an 8.83-mile, 24-inch diameter extension from Compressor Station 44 to an interconnection near Grand Bay, AL [CP09-455].

The extension would would transport 342,610 MMBtu/d of regasified natural gas from the proposed $1.1 billion LNG plant in Pascagoula to the existing Mobile Bay Lateral, which is located in Mobile County. The facilities would allow FGT to connect regasified LNG supply in south Alabama to its system.

The 1.3 Bcf/d Gulf LNG Clean Energy import terminal, which was approved by the Commission in February 2007, is targeted for service in fall 2011, according to the company (see Daily GPI, Feb. 16, 2007). Gulf LNG Energy is owned by Houston-based Crest Investments and Angola-based Sonangol. El Paso Corp. bought a $294 million half interest in the terminal and will manage its operations.

The Pascagoula expansion and Mobile Bay Lateral extension are interrelated. The Pascagoula expansion would be the upstream pipeline delivering gas into FGT's Mobile Bay extension project.

Transco is a 10,500-mile system that delivers gas from the Gulf of Mexico to New York City, the Mid-Atlantic and the Atlanta area. FGT, which is equally owned by Southern Union Co. and El Paso Corp., is a 5,000-mile pipeline that delivers 2.3 Bcf/d to the Florida market.

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