Florida Gas Transmission Corp. (FGT), Houston, appears to have taken the lead in competition to serve Florida's growing gas markets.
Florida Power & Light (FPL), Miami, decided to reserve transportation capacity on FGT's proposed Phase III expansion rather than the SunCoast pipeline proposed by United Gas Pipe Line Co. (UGPL), Houston, and Coastal Corp. unit ANR Pipeline Co., Detroit (OGJ, Aug. 31, p. 31).
Withdrawal of FPL, Florida's largest electric utility, from SunCoast left the proposed 560 mile, 400 MMcfd intrastate gas transmission pipeline with only one major prospective client, Florida Power Corp., St. Petersburg. That forced UGPL and ANR to dissolve the partnership.
Dissolution of the SunCoast partnership prompted Coastal to begin laying plans for another new Florida gas line, to be called SunShine pipeline. But UGPL still intends to build SunCoast and has dusted off plans in place before ANR joined the project.
UGPL said Florida doesn't need SunCoast and SunShine to serve future gas demand in the state.
Ultimately, whoever can line up enough firm shippers first is likely to determine which pipeline will be built.
Elsewhere in the U.S. gas transmission industry:
- A settlement between New York state regulators and Iroquois Gas Transmission System has ended litigation in state and federal courts.
- Southern Natural Gas Co. and subsidiary South Georgia Natural Gas Co., both of Birmingham, Ala., asked the Federal Energy Regulatory Commission for a permit to expand South Georgia's pipeline service to customers in Georgia and Florida.
FPL DECISION
FPL said its decision not to participate in the SunCoast project was based in large part on these factors:
- SunCoast would have required FPL to make a large capital contribution.
- Long term gas supplies supporting the SunCoast line did not compare with what will be available on the FGT Phase III expansion.
- FGT already had 33 customers signed up for capacity on its Phase III expansion, while SunCoast had only one letter of intent from a prospective shipper.
An FPL spokesman said, "We have worked with FGT for some time. It is a known commodity to us. We have had a long history with the company, and after an economic analysis we decided it would be more prudent to go with the FGT Phase III expansion project."
FPL already has 332 MMcfd of firm capacity on FGT's 100 MMcfd Phase 11 expansion, which began service last Dec. 31.
FERC is reviewing environmental factors in FGT's 530 MMcfd Phase III expansion. FGT expects to begin Phase III construction early in 1994 and complete work by yearend.
COASTAL PLANS
Coastal said its revised plan to increase gas supplies and transportation service available to Florida customers should take shape by the end of the year.
Preliminary plans call for SunShine pipeline to begin service early in 1995 with about 325 MMcfd of capacity.
As conceived, SunShine capacity would increase to almost 400 MMcfd in 1999. The project would include 148 miles of interstate line and more than 400 miles of intrastate line, about 90% of which is expected to consist of 30 in. pipe.
The line would run east from Pascagoula, Miss., to Tallahassee, then south along Florida's West Coast to the Tampa-St. Petersburg area and east into Polk County.
Coastal plans to file applications in October with FERC, Florida Public Service Commission, and Florida Department of Environmental Regulation for clearances to begin construction.
UGPL SUNCOAST PLAN
UGPL expects to start shipping gas on SunCoast during the 1995-96 winter with initial capacity of 200-300 MMcfd. By 2000, capacity of the 560 mile pipeline could increase to 475-575 MMcfd.
"FP&L was the one customer for whom it was critical to have the line in service by the winter of 1994-95," UGPL said.
The original plan, which UGPL has resurrected, called for SunCoast to be built in two segments:
- A 42 mile segment from Whistlers junction in Alabama, where three UGPL pipelines converge, to Walnut Hill in western Florida.
- More than 500 miles of line from Walnut Hill to the Tampa Bay area and southeast into Hardee County.
SunCoast is expected to consist of 24 in. or 30 in. pipe, depending on preferences of possible firm transportation shippers.
"Diameter of the pipeline is one of the major issues we're discussing with possible customers," a UGL spokesman said. "We're basically talking to the same customers today we were talking to originally."
Ultimately, Florida gas customers will decide whether SunCoast or SunShine pipeline will be built, UGPL said. UGPL is a subsidiary of United Gas Holding Corp., Houston.
IROQUOIS SETTLEMENT
New York State Public Utility Commission (Nypuc) approved a settlement with Iroquois that resolves all outstanding issues between the two parties stemming from construction of the 370 mile Iroquois gas pipeline from Ontario to Long Island, N.Y., and restoration of pipeline right-of-way in New York.
The settlement ends court proceedings brought by Iroquois and Nypuc with only slight variation from an agreement in principle disclosed in May (OGJ, May 18, p. 27).
Under the settlement, Iroquois agreed to set up a $1 million escrow account to ensure that all work required to complete restoration of the pipeline's right-of-way in New York will comply with state authorizations.
Iroquois also agreed to:
- Expand a $10 million land preservation and enhancement program by $500,000 to pay for environmental projects in New York identified by the Nypuc staff.
- Contribute $500,000 to the conservation fund of the New York Department of Environmental Conservation.
Iroquois pipeline has been embroiled in controversy for more than a year.
In August 1991, Nypuc ordered Iroquois, three contractors, and two subcontractors to show cause why they should not be fined $100,000 each for 11 alleged environmental violations during construction of the line (OGJ, Sept. 2, 1991, p. 33). In July 1991, New York state environmental officials arrested an Iroquois employee and five contractor employees at a stream crossing (OGJ, Oct. 21, 1991, p. 38).
More than 40% of gas transported by Iroquois will go to gas utility and power generation customers in New York.
SOUTH GEORGIA EXPANSION
South Georgia's $26.8 million project would hike system capacity by 40 MMcfd to about 130 MMcfd.
The project includes 63 miles of 12 and 16 in. loops in Alabama and Georgia, replacement of a 1,100 hp high speed reciprocating compressor with a 1,300 hp Saturn turbine at the Albany, Ga., station, construction of a 4,300 hp Centaur turbine compressor station near Adel, Ga., and replacement of some measurement and regulating equipment.
Completion target is May 1994.
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