Transportation news briefs, May 15

May 15, 2000
Southern Natural Gas Co. ... Enbridge Inc. � Suncor Energy Inc.

Southern Natural Gas Co., a business unit of Houston-based El Paso Energy Corp., filed an application with the US Federal Energy Regulatory Commission to expand capacity on its natural gas pipeline system by 335.9 MMcfd. The project, known as the South System Expansion, is supported by 15-year firm transportation agreements with Southern Co., Atlanta; South Carolina Pipeline Corp., a subsidiary of SCANA Corp., Columbia, SC; and the city of LaGrange, Ga. Estimated to cost $147 million, the project includes 73 miles of pipeline loop and more than 34,000 hp of mainline compression. Southern is requesting rolled-in rate treatment from FERC in its application. Service under the transportation agreements, which will be used primarily to fuel power generation projects, is expected to begin in June 2002.

A unit of Enbridge Inc., Calgary, will spend $35 million (Can.) to build four oil storage tanks to handle increased production resulting from the Suncor Energy Inc. oilsands expansion project in northern Alberta. Construction will begin immediately on the four 150,000-bbl tanks, and completion is expected in May 2001. The tanks will double capacity at the Enbridge Athabasca pipeline terminal to 1.2 million bbl.