Cypress

Move over Florida Gas Transmission (FGT), Southern Natural Gas, Gulfstream Natural Gas System LLC and Cypress Pipeline because Spectra Energy Corp. wants to build a 465-mile interstate natural gas pipeline into the Sunshine State.

After implementing capacity allocations last week in the East of Wrens, Savannah Line and Cypress Line delivery groups (see Daily GPI, Sept. 21) and then canceling them Friday, Southern declared new allocations Monday for those groups and said because their demand continues to exceed scheduled deliveries, they will be subject to an OFO Type 3 Level 1 Wednesday until further notice.

Southern Natural Gas Co. (SNG), a pipeline subsidiary of El Paso Corp., Monday asked FERC for authorization to place into service the Phase II facilities of its Cypress Pipeline project , an expansion of SNG that would extend from the pipeline’s liquefied natural gas (LNG) terminal in Georgia to the Florida market. The request comes nearly a year after SNG placed Phase I of the expansion into operation (see Daily GPI, May 2, 2007).

Citing the weather forecast and projected demand on its system, Southern Natural Gas declared that the Savannah Line and Cypress Line delivery groups were subject to an OFO Type 3 Level 2 Monday until further notice. Such an OFO indicates that daily demand exceeds capacity. Penalties of $15/Dth were set for “any shipper whose allocated deliveries at any delivery point(s) within the groups…exceed 102% of their daily entitlement at such delivery point,” Southern said.

Trunkline postponed a three-day outage of Valve Section 32between the Cypress and Kountze Stations in East Texas until June.It will require shutting in all receipts upstream of the sectionunless they entail equal deliveries upstream.