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Gulf South Pipeline gets US FERC nod for Louisiana expansion

Washington (Platts)--9 Oct 2017 438 pm EDT/2038 GMT


Gulf South Pipeline has won approval from the US Federal Energy Regulatory Commission for a compression project in southeast Louisiana that would add 133,333 Dt/d of firm transportation to serve a 980-MW natural gas-fired, combined-cycle power plant planned in the state near Montz by Entergy Louisiana.

The St. Charles Parish Expansion project (CP16-479) entails a new compressor station, about 900 feet of 16-inch-diameter pipeline and related facilities, connecting to Gulf South's 24-inch-diameter Index 270 pipeline.

The Montz Compressor Station will include two 2,500 horsepower compressor engines, near the intersection of Gulf South's Index 270 and Index 270-94 pipelines.

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Following an open season in the spring of 2016, Entergy Louisiana entered into a precedent agreement that involved an interim agreement covering a lower amount, 75,000 Dt/d, to allow a supply test during commissioning of the power plant, as well as a longer-term agreement covering the full 133,333 Dt/d for an initial term of 10 years, according to the FERC order. The project is estimated to cost $29.7 million.

Gulf South has previously said it hoped to start construction in the fall of 2017 and bring the facilities online by September 1, 2018.

During the review process, a group of existing Gulf South customers did not oppose the project but aired some concern that the compressor stations might use a substantial amount of fuel, potentially affecting the fuel rate.

FERC was satisfied, however, by Gulf South's fuel study on the daily design fuel rate and maximum capability design fuel rates.

"Both fuel rates are lower than the system-wide fuel rate of 1.22% and the combined rate of 1.24%, which incorporates a 0.02% lost and unaccounted for rate," FERC said. "In this regard we find that the project will have the effect of reducing, rather than increasing, the general system fuel rate to the benefit of all system shippers."

--Maya Weber, maya.weber@spglobal.com

--Edited by Lisa Miller, lisa.miller@spglobal.com



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