Gulf South holds open season for natural gas transportation project

Gulf South Pipeline Co. LP

Gulf South Pipeline Co. LP, a subsidiary of Boardwalk Pipeline Partners LP (NYSE: BWP), has entered into 20-year firm precedent agreements with foundation shippers to transport 1.4 billion cubic feet per day of natural gas to serve the first two trains of the planned liquefaction terminal, announced by Freeport LNG Development LP, near Freeport, Texas.

Freeport LNG has received its final order for the development of the liquefaction terminal from the Federal Energy Regulatory Commission (FERC) and anticipates receiving FERC's authorization to construct in the near future.  

Gulf South plans to construct a 65 mile pipeline supply header to serve the liquefaction terminal, to be named the Coastal Bend Header, and 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, subject to Gulf South and customer board approvals, final investment decision by Freeport LNG, and receipt of all necessary regulatory approvals. The shippers on the header will have the flexibility to source supplies from several third party pipelines directly connected to the header and access storage facilities within the region.

Gulf South is conducting a binding open season, from Sept. 11 through Oct. 10, to solicit bids for additional capacity in excess of the foundation shippers' contracted capacity for both the new supply header and expansion of its legacy system.

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