El Paso Energy’s Southern Natural Gas pipeline last week filedan application at FERC seeking to expand its South Main system byabout 336 MMcf/d to serve utility power plants in North Carolinaand other southeastern markets.

The proposed South System Expansion calls for the constructionof about 73 miles of pipeline looping and the addition of more than34,000 horsepower of compression along Southern Natural’s system inMississippi and Georgia for an estimated cost of $147 million, saidspokesman Mel Scott. The expansion, for which the pipeline isseeking rolled-in treatment from FERC, has a targeted in-servicedate of June 2002.

The entire capacity of the project has been subscribed under15-year firm transportation agreements with Southern Company, amajor power generation producer; Scana Corp.’s South CarolinaPipeline Corp.; and the city of LaGrange, GA.

Southern Natural’s proposed expansion would tie in with SouthCarolina Pipeline’s plans to extend its system by 300 miles toserve three new 200 MW power plants, three ethanol productionfacilities and a new fiber optic cable in North Carolina.

“We have served an increasing number of gas-fired peaking plantsover the past few summers, but this expansion will serve the firstsignificant baseload power plants on Southern Natural that will runyear-round,” said Southern Natural President Jim Yardley. Theproject represents a “significant growth opportunity” for SouthernNatural in the southeastern power generation market, he noted.

Susan Parker

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