The Southeast Supply Header, LLC (SESH) pipeline connects the onshore natural gas supply basins of east Texas and northern Louisiana to markets in the Southeast that are now predominantly served by offshore natural gas supplies from the Gulf of Mexico. It offers customers an alternative to offshore supply, which is susceptible to weather-related disruptions. Gas shipped on SESH is produced from unconventional supplies such as the Barnett Shale, the Bossier Sands, and the Arkoma and Fayetteville Shale.

SESH comprises both 36- and 42-inch-diameter pipeline and extends 274 miles from CenterPoint Energy's Perryville Hub near Delhi, La., to the Gulfstream Natural Gas System interconnection near Colden, Ala. Its capacity is 1 billion cubic feet per day. In addition to Gulfstream, SESH interconnects various interstate natural gas pipelines that enable supply to reach southeast and northeast markets as well as high-deliverability storage facilities.

Subsidiaries of Spectra Energy Corp and CenterPoint Energy, Inc. own equal shares of the SESH joint venture. Spectra Energy Transmission oversees gas control and commercial operations while CenterPoint handles field operations. SESH begin commercial operations on September 6, 2008. Major shippers include Southern Co., Tampa Electric Co., EOG Resources, Inc., Florida Power & Light Co., and Progress Energy Florida.

Expansion project

The SESH joint venture on Dec. 1, 2008, announced a proposed expansion along its existing 274-mile pipeline system. During the non-binding open season, which SESH is holding through Jan. 16, 2009, prospective shippers will have the opportunity to request service from any existing or proposed receipt points to any existing or proposed delivery points. SESH will finalize the scope of the expansion following the open season.

The joint venture anticipates an in-service date of the expansion as early as mid-2011.