AGL completes pipeline linking Elba Island to Georgia service territory

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Related Companies AGL Resources (AGL) Atlanta Gas Light Co. El Paso Corp. (EP) Southern Natural Gas Co.

Related Articles 7/17/2008 FERC approves sale deal between Magnolia, Southern Natural Gas 4/30/2008 AGL CEO views market fundamentals as favorable to gas for foreseeable future 9/28/2007 Atlanta Gas Light gets permission to access Elba Island LNG supplies

AGL Resources Inc. has completed its Magnolia Pipeline Project, which connects the company's local distribution company service territory in Georgia to LNG imports arriving at the Elba Island terminal near Savannah, Ga., the company said Nov. 2.

The Magnolia project is part of a capacity supply plan approved by the Georgia Public Service Commission in September 2007. The project enables AGL to provide more than 83,000 Dth/d of capacity to the customers of its Atlanta Gas Light Co. subsidiary "at a potential discount compared with the cost of long-haul supplies delivered from the Gulf Coast," Hank Linginfelter, AGL's executive vice president for utility operations, said in a statement.

"Gaining access to Elba Island LNG deliveries is part of our long-term plan to achieve greater diversity of natural gas supply, which will provide local customers with increased reliability of service in the event that supplies coming from the Gulf Coast are disrupted," Linginfelter said.

In 2008, FERC approved a joint application by Magnolia Enterprise Holdings, a wholly owned subsidiary of AGL, and Southern Natural Gas Co., a subsidiary of El Paso Corp., authorizing Magnolia to obtain an undivided interest in pipelines owned by Southern Natural connecting Atlanta Gas Light's Georgia service territory to the Elba Island LNG facility.

Under the agreement, Magnolia Enterprise Holdings will own the undivided interest and, in turn, lease the interest to Southern Natural. Also under the agreement, Magnolia Enterprise Holdings will acquire from Atlanta Gas Light an interest in a portion of the Atlanta Gas Light-owned Brunswick Pipeline, extending from Glynn County to Laurens County, Ga. Magnolia Enterprise Holdings also will lease the interest in the Brunswick Pipeline to Southern Natural.

Going forward, Atlanta Gas Light will subscribe to the associated pipeline capacity from Southern Natural.