Federal Regulators OK Florida Natural Gas Pipeline Project
November 19 2009 - 12:35PM
Dow Jones News
The Federal Energy Regulatory Commission on Thursday approved
Florida Gas Transmission Company's $2.45 billion Phase VIII natural
gas pipeline expansion project, which will transport gas to power
plants throughout the Sunshine State.
The project will add more than 483 miles of pipeline and install
one new compressor station, creating 820,000 million cubic feet of
gas transportation capacity from Alabama to Florida. The U.S. uses
about 60 billion cubic of gas a day.
Florida Gas Transmission expects the first phase of the project
to begin service by July 1, 2010, while the second phase is
scheduled to start by April 1, 2011. As part of the project, the
company will acquire the 22.7-mile Martin Lateral, a pipeline
segment owned by FPL Group's (FPL) Florida Power & Light
Company.
The project will serve gas-fired power plants owned by Progress
Energy Inc.'s (PGN) Florida utility, Teco Energy's (TE) Tampa
Electric, Seminole Electric Cooperative Inc., the Orlando Utilities
Commission and the City of Tallahassee, Fla. The expansion project
doesn't require state approval because interstate pipelines are
regulated by FERC, Florida Gas Transmission spokesman John Barnett
said.
Florida Gas Transmission is 50% owned by El Paso Corp. (EP) and
50% owned by Southern Union Company (SUG). The Florida Gas
Transmission system includes 5,000 miles of pipeline stretching
from Texas to south Florida.
FERC's approval of the Florida Gas Transmission project comes
weeks after Florida regulators denied FPL's proposal to build a new
underground gas pipeline in the state, arguing that the project
wasn't the most cost-effective and reliable way to bring more gas
to Florida.
-By Christine Buurma, Dow Jones Newswires; 212-416-2143;
christine.buurma@dowjones.com
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