The Federal Energy Regulatory Commission on Thursday approved a new natural gas pipeline proposed by Southeast Supply Header LLC (SESH) that would provide service to customers in the southern and eastern United States.
"A robust energy infrastructure can provide reliability of supply at lower prices," Commission Chairman Joseph T. Kelliher said. "A weak infrastructure can result in higher prices, greater price volatility, lower supply reliability, and less effective competition. Today, we take a series of actions to strengthen our natural gas infrastructure."
FERC's decision allows SESH and Southern Natural Gas Co. to construct and operate 269 miles of new 42-inch and 36-inch diameter pipeline and related facilities that will transport up to 1.114 Bcf of gas per day in facilities that will begin at the Perryville Hub near Delhi, La., continue through Mississippi and terminate near Coden, Ala.
The project will transport gas from unconventional U.S. gas supplies including Barnett Shale, Bossier Sands and Arkoma and Fayetteville Shale, that will allow service to customers throughout the Southeast, Atlantic Coast and Northeastern U.S. through pipeline interconnections with nine natural gas companies. Customers receiving gas through the proposed SESH pipeline include Florida Power and Light, Progress Energy Florida, EOG Resources, Inc., and Tampa Electric Company.
The Commission ordered SESH and Southern to complete the proposed facilities within one year of the issuance of its order.
The Commission adopted FERC staff recommendations to mitigate potential adverse environmental, safety and security concerns, and will impose several conditions on the approved project.