NEW YORK, July 17 Destin Pipeline Co LLC said on
Wednesday it would not move forward with expansion plans on its
onshore natural gas pipeline system in the U.S. South after
failing to garner sufficient interest in the project.
The company said in a company website posting that it had
concluded two open seasons for existing and expanded capacity on
its pipeline system, but did not receive enough binding offers
Destin added that it would accept requests for firm
transportation service for any remaining available capacity on a
first come first served basis.
The 225-mile Destin gas pipeline system is majority-owned by
BP Plc's Amoco Destin Pipeline Co, with Enbridge Inc's
Enbridge Offshore owning a 33 percent stake.
It has the capacity to carry 1.2 billion cubic feet per day
from offshore wells in the Gulf of Mexico to the Pascagoula
natural gas processing plant, where it extends north and
connects with nine major interstate gas lines.
Recent pipeline and gas processing plant additions in the
Marcellus Shale region in the U.S. Northeast and from the
Rockies have diminished the need for supplies from the Gulf of
Early in the last decade, supplies from the U.S. Gulf of
Mexico helped meet more than 20 percent of U.S. natural gas
needs. That was down to a little over 6 percent as of last year.