Southern Natural Gas Nears Construction Phase for $240 Million Cypress Natural Gas Pipeline

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Researched by Industrial Info Resources (Sugar Land, Texas). Southern Natural Gas Company (Birmingham, Alabama), a subsidiary of El Paso Corporation (NYSE:EP ) (Houston, Texas), is nearing the construction phase on the Cypress Pipeline Project in Georgia and Florida. The planned pipeline will originate in Chatham County, Georgia, near Port Wentworth and terminate in Clay County, Georgia. The source of the natural gas will be El Paso’s Elba Island LNG terminal, which averages five shipments per month of LNG, each containing approximately 1 billion cubic feet of natural gas.

The Cypress Pipeline Project will provide interstate transportation services for 220 million cubic feet per day of natural gas to electric generation facilities, local distribution companies, large industrial plants, and municipal customers in Southern Georgia and Florida. The first phase of the pipeline project will entail construction of 165 miles of 24” diameter n/g transmission pipeline. The second and third phases of the Cypress Project will focus on increasing the capacity of the pipeline by adding compression.

In phase II, Southern Natural proposes to construct a natural gas compressor station in Brantley County, Georgia. The new compressor station will utilize a single 10,300 horsepower Solar Taurus T-70 turbine compressor package. In Phase III, Southern Natural plans to construct a second compressor station in Liberty County, Georgia. The phase III compressor station will either be similar to the phase II station, with regards to the turbine type, or it will be a 10,000+ horsepower electric drive compressor package.

Southern Natural has awarded the pipeline portion of the project to Gulf Interstate Engineering Company (Houston, Texas). The contracts awarded include engineering and project management services. Southern Natural hopes to begin construction on October 1 2006 and have the phase I pipeline portion of the project in-service in May of 2007. Completion of phase II is scheduled for May of 2008 and phase III is scheduled for completion in 2009.

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