Southeast Supply Header, LLC (SESH) on Thursday received authorization from the Federal Energy Regulatory Commission (FERC) to construct, operate and maintain 270 miles of interstate pipeline that will bring alternative supplies of natural gas to the Southeast U.S. market.
FERC issued its approval following a thorough review of the project and an extensive public outreach effort by SESH and the FERC staff. Following review of the order SESH expects to mobilize to begin construction.
SESH, a joint venture between subsidiaries of CenterPoint Energy, Inc. and Spectra Energy Corp, will transport up to 1 billion cubic feet per day of natural gas from the onshore supply basins of east Texas and northern Louisiana to Southeast markets. The new supplies will offer greater energy reliability and security to markets currently served predominantly by offshore natural gas supplies from the Gulf of Mexico.
"We appreciate FERC's comprehensive review and timely approval of this important infrastructure project," the companies said. "FERC recognizes the significant need for natural gas that exists in the Southeast and has authorized us to deliver new supplies to the region. SESH is committed to constructing, operating and maintaining this project safely, and ensuring that impacts to landowners, communities and the environment are kept to a minimum."
The pipeline will extend from CenterPoint Energy's Perryville Hub in northeast Louisiana to the Gulfstream Natural Gas System, which is 50 percent owned by an affiliate of Spectra Energy. Along the route, SESH will access several major pipelines serving the eastern United States and will have access to several storage facilities.
In addition to the 36-inch and 42-inch diameter pipeline, facilities approved by the FERC include three mainline compressor stations and two booster compressor stations. Construction on the estimated $840 million project will begin later this year and is expected to be placed into service in the summer of 2008.
SESH is seeking remaining permits from other federal and state agencies.