FERC Friday approved Gulf South Pipeline Co. LP’s request to abandon by sale or intercorporate transfer to affiliate Boardwalk Field Services LLC 280 miles of transmission and gathering pipelines in South Texas.

The production-area facilities in Texas that Gulf South proposes to abandon consist primary of 90 miles of 30-inch diameter pipeline and approximately 52 miles of 24-inch diameter pipeline and two compressor stations (Refugio and Edna, each with eight 1,500 hp reciprocating units), according to Gulf South, which is owned by Boardwalk Pipeline Partners LP [CP11-478].

In seeking to abandon the South Texas facilities, Gulf South told the Federal Energy Regulatory Commission that the section of the facilities has become underutilized. “Gulf South states that dry gas production in South Texas continues to decline. As a result of the relatively high prices of natural gas liquids as compared to dry natural gas, Gulf South claims that producers are delaying the production of dry gas to focus on the production of liquids-rich natural gas (rich gas)” from the Eagle Ford Shale in South Texas.

“Once abandoned, [Boardwalk] Field Services intends to convert the facilities into primarily rich gas transportation facilities and operate them in nonjurisdictional services,” said Boardwalk, also a subsidiary of Boardwalk Pipeline Partners.

Gulf South said it intends to physically disconnect the South Texas facilities from its remaining Gulf South facilities. It said it “has discussed long-term solutions with all of the customers that will continue to have primary firm receipt and delivery points on the South Texas facilities after a proposed closing date of Nov. 1.

“For customers with primary receipt points on the South Texas facilities, Gulf South has offered to move the receipt points to other Gulf South points located in Texas at the existing contract rates,” the pipeline said.

Gulf South contends that no existing shipper on its remaining system will be harmed economically or in terms of quality of service.

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