Southeast Supply Header LLC (SESH) has asked FERC for authorization to begin service Friday over its new pipeline facilities extending from northeast Louisiana to an interconnection with Florida Gas Transmission (FGT) near the Mississippi-Alabama line.
“SESH anticipates that it will be able to commence service as early as Sept. 5 on its facilities from the beginning of the system at the receipt point interconnections near Delhi, LA, to the interconnection with FGT,” the Houston-based pipeline said in a letter Tuesday to FERC [CP07-44]. “Commencing service on this portion of the SESH system will enable SESH shippers to obtain natural gas supplies from onshore sources. Construction of the remaining portion of the SESH pipeline [to an interconnect with Gulstream Natural Gas System] is expected to be finished by mid-September.”
SESH urged the Federal Energy Regulatory Commission to issue an order by no later than Thursday so shippers can nominate service as early as Friday. The project was issued a final environmental impact statement last summer (see Daily GPI, Aug. 13, 2007).
The schedule for the remainder of the facilities up to the Gulfstream delivery point will be defined once the impact of Hurricane Gustav is better known, according to SESH. It said commissioning activities will continue for the first few weeks after the in-service date and may impact available capacity from time to time. In addition, subject to receiving approval from the Department of Transportation to operate under its special permit, SESH said it will operate at less than design capacity.
SESH, a joint venture of Spectra Energy and CenterPoint Energy Gas Transmission, will carry up to 1.14 Bcf/d from the Perryville Hub in Louisiana to interconnecting pipelines serving eastern U.S. markets and terminate at the Gulfstream interconnect near southern Mobile County, AL. The new line will tap supplies from the Barnett Shale and Bossier Sands, as well as regasified liquefied natural gas coming into the Gulf Coast.
The project includes about 270 miles of 36- to 42-inch diameter pipeline spanning three Gulf Coast states; laterals in Mississippi and Alabama; three mainline compressor stations in Mississippi and Alabama; and other associated facilities. Customers signed up for capacity on the SESH include Florida Power and Light, Progress Energy, Southern Co., Tampa Electric and EOG Resources.
SESH will link the onshore natural gas supply basins of East Texas and North Louisiana to Southeast markets now predominantly served by offshore natural gas supplies from the Gulf of Mexico. This pipeline will give customers an important alternative to offshore supply, which can be vulnerable to weather-related disruptions, according to the company.
Along its route, SESH will interconnect with several interstate natural gas pipelines, providing opportunities for supply to reach Southeast and Northeast markets as well as several storage facilities.
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