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Florida Power & Light to Become Anchor Shipper on Proposed FGT Pipeline

Posted on: Tuesday, 12 February 2008, 06:00 CST

Gas pipeline operator Florida Gas Transmission has announced that Florida Power and Light has agreed to become the anchor shipper on a proposed natural gas pipeline expansion project through a 25-year service agreement for 400 million cubic feet per day capacity.

As part of this precedent agreement, Florida Gas Transmission Company (FGT) will seek regulatory approval to build a proposed Phase-8 system expansion at an estimated cost of $2 billion to provide approximately 800 million cubic feet per day of increased natural gas capacity into Florida.

The proposed Phase-8 expansion includes construction of approximately 500 miles of additional large diameter pipeline and the installation of approximately 170,000HP of additional compression. FGT is anticipating a spring 2011 in-service date for the project.

As proposed, the Phase-8 expansion will increase the capacity of FGT's mainline facilities from the Mobile Bay, Alabama, area to southern Florida to provide additional firm transportation service capacity throughout Florida to meet the state's rising energy demand.

Bob Hayes, senior vice president and chief commercial officer of Florida Gas Transmission, said: ""Florida needs more generation capacity to meet the growing electric demand. Natural gas is a cleaner burning fossil fuel that could supply FPL (Florida Power and Light) and other customers with the fuel to meet the increasing electrical need with less environmental impact than alternative fuel sources."

Source: Datamonitor

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