Boardwalk Pipeline Partners LP's Gulf South Pipeline Co. LP is holding an open season for firm capacity on its proposed Southeast Market Expansion, which is designed to increase the pipeline's ability to move gas in the East Texas and Perryville, LA areas, to serve growing demand in the Southeast, including industrial and power generation markets in Mississippi, Alabama and Florida.

The expansion, projected to be in service by late 2014, would provide delivery capabilities to new markets in the area, as well as increase capacity to existing markets that are east of Gulf South's Kiln compressor station in Hancock County, MS. The open season concludes July 25. Binding and nonbinding bids will be accepted.

Expansion customers would have access to Gulf South's new Perryville Exchange point, which the pipeline said it expects to become "a key trading hub" supplied with gas from the Haynesville, Barnett, Woodford, Fayetteville and Eagle Ford shales (see Daily GPI, Feb. 9, 2012).

"Due to an abundance of competitively priced natural gas supplies and changing standards that govern electric power generation, natural gas demand for power generation and industrial consumption are both expected to grow substantially over the next decade," said John Haynes, Boardwalk chief commercial officer. "A good portion of this demand growth is expected to occur in the southeastern region of the United States and the Southeast Market Expansion would provide this region with additional access to reliable and diverse natural gas supply sources already connected to Gulf South."

Boardwalk can provide high-deliverability salt dome storage services and flexible firm services that are geared toward meeting the needs of end-use customers such as power generators, the company said.

As part of the expansion, Gulf South will evaluate installing an interconnection with Florida Gas Transmission Co. in southeast Mississippi, and additional delivery locations will be considered based upon market interest. For more information, visit the Gulf South website.

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