CenterPoint Energy Inc. subsidiary CenterPoint Energy Gas Transmission Co. (CEGT) on Tuesday launched a nonbinding, 31-day open season to gauge market interest in a new firm wheeling service designed to provide shipper access to existing excess receipt and delivery capacity, along with planned future expansions of such capacity, in the growing Perryville Hub area in northeast Louisiana.

CEGT, which has been offering wheeling service on an interruptible basis, said its new firm wheeling service would allow shippers to secure access on a firm basis to excess receipt and delivery point capacity on any of the 16 existing interstate pipeline facilities connected via the CEGT Perryville Hub. Additionally, CEGT is constructing five new interstate pipeline interconnects with recently announced pipeline expansions for Perryville Hub service as well as providing interconnects with proposed storage opportunities, capitalizing on the growing interest in storage projects associated with Perryville Hub service.

The company noted that the Perryville Hub service will further facilitate connecting new supplies of gas from the Barnett Shale in Texas, the Haynesville Shale in northwest Louisiana, the Woodford Shale in southeastern Oklahoma and the Fayetteville Shale in northeast Arkansas to markets in the Midwest, Northeast and Southeast.

“The Perryville Hub is the fastest growing service for connecting supplies with markets throughout the country. In the future we could have over 9 Bcf/d of natural gas supply passing through the Perryville Hub area,” said Cy Zebot, senior vice president of CEGT. “Given CEGT’s unparalleled access to a substantial number of interstate pipelines and anticipated storage opportunities, the growth shown in the Perryville Hub, and the continuing volatility in the natural gas market, we feel that our new firm wheeling service will be well received as one of the innovative tools needed by the market. With acceptance of our new firm wheeling service by the FERC, we plan to have firm service in place by September 2008.”

CEGT said the new firm wheeling service will utilize existing facilities as well as potential additions. The company said it has more than 5 Bcf/d of existing excess receipt and delivery capacity available to provide Perryville Hub services. In addition, CEGT expects more than 6 Bcf/d of new receipt and delivery capacity to be added in the future from planned pipeline expansion projects that will be able to access the Perryville Hub’s services.

The region has been a hotbed of activity recently as production increases have led to new infrastructure proposals. On Monday Cardinal Gas Storage Partners LLC subsidiary Perryville Gas Storage LLC announced a nonbinding open season for 15 Bcf of capacity at a planned gas storage facility about 12 miles south of Delhi, LA. The facility will have the ability to interconnect to the Perryville Hub (see Daily GPI, June 24).

CEGT said it has received and accepted an order from the Federal Energy Regulatory Commission permitting it to add the new firm wheeling service to its menu of Perryville Hub services. CEGT invites interested shippers to offer both fixed rates, as well as “innovative, market-based pricing structures.”

Written indications of interest should be received by CEGT by 5 p.m. CDT on July 25. For more information, contact John Fogg, director of off-system marketing, at (713) 207-5183 or john.fogg@cenerpointenergy.com.

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