Southern Natural plans third mainline expansion to supply generation

Southern Natural Gas Co., a subsidiary of El Paso Corp., said Tuesday it has entered into binding long-term firm transportation agreements with various shippers for 267 MMcfd. It said substantially all of that gas would be used to supply new power generation plants in the southeastern US.

May 1, 2001

By the OGJ Online Staff

HOUSTON, May 1 -- Southern Natural Gas Co., a subsidiary of El Paso Corp., said Tuesday it has entered into binding long-term firm transportation agreements with various shippers for 267 MMcfd.

It said substantially all of that gas would be used to supply new power generation plants in the southeastern US.

Southern Natural is preparing to apply to the Federal Energy Regulatory Commission for an expansion of its mainline, which will include the construction of both pipeline looping and compression to support the added demand in Alabama, Georgia, and South Carolina. The expected in-service date for the expansion is June 2003.

Earlier, Southern Natural had announced two other mainline expansions. The three projects, which will primarily serve new power generation plants in the Southeast, would increase Southern Natural's capacity by 635 MMcfd during 2002 and 2003 at an estimated capital cost of $350 million.

The company also recently announced the Cypress Pipeline Project, scheduled to transport gas in Southeastern Georgia and Florida with a capacity of 310 MMcfd (OGJ Online, Apr. 26, 2001).