Boardwalk Pipelines greenlights controversial Gulf South pipeline project

In the United States, specifically in Houston, on December 11, 2024, Boardwalk Pipelines, LP's Board of Directors officially announced a significant investment decision. They have given the green light for the Gulf South Pipeline Company, LLC to proceed with the Kosci Junction Pipeline Project, which is set to serve a rapidly growing energy market. The project involves construction of approximately 110 miles of 36-inch pipeline and includes additional compression capacity aimed at enhancing the transport of natural gas. The capacity of the project is designed to initially transport 1.16 billion cubic feet per day (Bcf/d). To ensure the project's viability, Gulf South has already secured a 20-year agreement with an anchor customer. Furthermore, the company is actively negotiating with other potential customers to utilize the pipeline’s additional capacity, which could increase to a total of 1.58 Bcf/d, reflecting the anticipated demand for natural gas in the region. This move is particularly crucial as it aims to supply markets in the Southeast United States, connecting natural gas sources from the Haynesville, Utica/Marcellus, and Fayetteville basins. Boardwalk's investment is a strategic response to the rising energy needs driven by factors like the expansion of data centers and overall industrial demand throughout the Southeast. Scott Hallam, the President and CEO of Boardwalk, highlighted the importance of the project, indicating that it will serve as a vital gas supply route to bolster economic development. The pipeline will make it easier for energy providers to meet the requirements of new industrial projects and assist ongoing economic growth, especially in Mississippi. Gulf South has plans to initiate the Federal Energy Regulatory Commission (FERC) pre-filing process within the first quarter of 2025 and aims to submit the FERC certificate application by the third quarter of 2025. The project is expected to be operational by the first half of 2029, indicating a long-term investment that addresses current and future energy demands in the region.