Gulf South Pipeline Co. LP has filed an application at FERC to build 242 miles of high-pressure pipeline that would connect its existing system in DeSoto Parish in northern Louisiana to its 30-inch diameter pipeline in Simpson County, MS.

The project, which would include the addition of 110,604 horsepower of new compression, would be capable of transporting up to 1.7 Bcf/d of natural gas supplies from the pipeline-constrained production areas in Texas to interconnects with other interstate pipelines for delivery to markets in the Midwest, Northeast and Southeast.

As part of the proposed expansion, Gulf South has asked the Federal Energy Regulatory Commission for authorization to lease to Texas Gas Transmission LLC 62,180 Dth/d of unsubscribed capacity on Gulf South’s existing pipeline system and its proposed expansion facilities for a primary term of six years. As a result of a recent open season, Texas Gas said it has entered into contracts with shippers for a total of 60,000 Dth/d.

The lease capacity would be made available to Texas Gas on Sept. 1, 2007, subject to FERC approval.

Gulf South proposes to construct a new delivery point at a point of interconnection with Texas Gas near Bosco, LA, where the lease volumes will be delivered into the Texas Gas system. The lease would allow Texas Gas to use Gulf South’s proposed pipe expansion to effectively extend the Texas Gas system further into the supply-rich areas of East and North Texas, thereby providing a needed market outlet for the natural gas supplies and giving markets served by the Texas Gas system greater access to the supplies.

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