Gulf South Pipeline Co. LP, a subsidiary of Boardwalk Pipeline Partners LP, entered into 20-year firm precedent agreements with foundation shippers to transport natural gas to serve the first two trains of the previously announced liquefaction terminal planned by Freeport LNG Development LP. The Freeport project, near Freeport, Texas, has received its final order for development of the terminal from the Federal Energy Regulatory Commission (FERC) and expects to receive FERC authorization to build soon.
Under the agreements, Gulf South will transport about 1.4 billion cubic feet per day of natural gas. The company plans to build a 65-mile pipeline supply header to serve the Freeport terminal, which will be named the Coastal Bend Header. Gulf South also intends to expand and alter existing facilities to provide more supply sources for the header, with an anticipated start date in 2018, subject to regulatory approvals, a final investment decision by Freeport LNG and customer board approvals.
Gulf South is holding a binding open season to solicit bids for the additional capacity not utilized under the foundation shippers’ contracted capacity for the planned expansions. The open season will run for thirty days beginning Sept. 11 at 8 a.m. Central Daylight Time and ending Oct. 10 at 5 p.m. Central Daylight Time. Final capital expenditures for the project will be determined after the open season’s conclusion.
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