Southern Natural Gas considers another mainline expansion

Southern Natural Gas Co., a subsidiary of El Paso Corp., has begun a nonbinding open season for a pipeline expansion project to provide additional transportation service in the southeastern US. The open season will close Aug. 1.


By the OGJ Online Staff

HOUSTON, July 26 -- Southern Natural Gas Co., a subsidiary of El Paso Corp., has begun a nonbinding open season for a pipeline expansion project to provide additional transportation service in the southeastern US.

The open season will close Aug. 1. Southern said the open season will allow it to gauge market interest, economics, and design parameters for a proposed 2004 pipeline expansion.

The company expects to execute binding service agreements by Dec. 15.

This open season follows two other expansion projects of Southern's south mainline system. One will come on stream in 2002, and the other will come on stream in 2003, pending government approval. Those two expansions provide for long-term, firm agreements to transport 700,000 decatherms/day.

Southern said demand in southeastern markets continues to increase because of gas-fired power generation and industrial consumption.

More in Pipelines & Transportation