Gulf South Pipeline Company, a subsidiary of Boardwalk Pipeline Partners, is planning to build a 65-mile pipeline to serve the new liquefaction terminal proposed by Freeport LNG Development near Freeport, Texas, FuelFix reported.
Gulf South said on Wednesday that it is conducting a binding open season to solicit bids for additional capacity on the line and also an expansion of its legacy system. The company has already entered into 20-year agreements with foundation shippers to transport approximately 1.4 billion cubic feet per day of natural gas for the first two trains of the facility.
John Haynes, senior vice president and CCO of Gulf South, welcomed the initial supply agreements and said that the company was looking forward to serving the foundation shippers as well as the opportunity to offer additional capacity to the market.
In addition to constructing the pipeline supply header to serve the liquefaction terminal, Gulf South plans to expand and modify existing facilities in order to provide access to additional supply sources for the header, with an anticipated start date in 2018. Those plans remain subject to Gulf South and customer board approvals, the final investment decision by Freeport LNG and regulatory clearance. The company noted that shippers on the header will have the flexibility to source supplies from several third party pipelines directly connected to the header and to access storage facilities within the region.
Freeport LNG has been granted a Final Order for development of the liquefaction terminal from the Federal Energy Regulatory Commission (FERC) and expects to receive FERC's authorization to start construction in the near future.
