AGL completes Magnolia pipeline

AGL Resources has announced the completion of its Magnolia Pipeline Project, connecting the company’s Georgia service territory to liquefied natural gas (LNG) imports arriving at the Elba Island terminal near Savannah, Georgia.

“We currently receive the majority of our natural gas supply in Georgia from a production region in and around the Gulf of Mexico, and – until the recent economic slowdown – demand for this natural gas has grown faster than supply,” said Ralph Cleveland, executive vice president, Engineering and Operations. “The Magnolia pipeline project, which was part of a capacity supply plan approved by the Georgia Public Service Commission, will position our Atlanta Gas Light business to meet future increases in natural gas demand once the local economy recovers,” Cleveland said.

The project offers other benefits, as well. “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,” said Hank Linginfelter, executive vice president, Utility Operations.

“The Magnolia project also enables us to provide more than 83,000 dekatherms per day of capacity to customers in Georgia at a potential discount compared with the cost of long-haul supplies delivered from the Gulf Coast,” Linginfelter said. “That’s enough supply to serve 63,000 Georgia homes with clean-burning, efficient natural gas on the coldest day of the year.”