Diversity of supply sources, a pipeline infrastructure thatblankets nearly the entire state of Florida and strong customerties will give Florida Gas Transmission (FGT) the edge overcompeting pipelines-such as Williams-Transco’s proposed BuccaneerPipeline-that are planning projects into the state in an attempt tocapture a portion of the growing power generation market there,says FGT President Rockford G. Meyer.

“I think our pipeline system offers a lot of advantages over aline which is just coming over the Gulf [and would access] onlyGulf supplies,” he said, when asked if he viewed the plannedBuccaneer line as a competitive threat. “Our pipeline accesses notonly the offshore Gulf of Mexico supplies, but also supplies fromSouth Texas, Louisiana, Mississippi and Alabama. We accessinterstate pipelines, intrastate pipelines, plant gas and wellheadgas. That’s a very valuable asset to our customers, we think, tohave that kind of diversity of gas supply, and not just be tied tosupplies out in the Gulf, which can be subject to fairlysignificant weather.”

Also “because we have the existing pipeline infrastructure,we’re able to expand our system in a very cost competitive manner”and more quickly by looping or adding compression, Meyer said. “Wedon’t need to build a 500-600 MMcf/d line to serve new load. We cansize our expansion to meet the precise needs that the market has.So I think from a gas supply, from a flexibility and from a costperspective, it would be very difficult for another pipeline tocompete” against FGT in the Florida market. Since 1990, thepipeline-which extends from the southern tip of Texas to southerntip of Florida-has doubled in size to 5,000 miles as a result ofseveral expansion projects.

Meyer further thinks the planned Buccaneer line, which would run400 miles under the Gulf of Mexico and come ashore somewhere nearTampa Bay, FL, could face opposition from state regulators andenvironmentalists. “Obviously, there has not been one [pipeline]built across the Gulf to the state of Florida. Thestate…historically has been very protective of its beaches andwaterways, and I think rightfully so. I think this would be a realconcern if I were looking at building across the Gulf,” he toldNGI.

Meyer said he wouldn’t be at all surprised to see other pipelinecompetitors try to enter the Florida market in the future to cashin on the expected growth in the generation market, but he’s notworried about that now. “…[O]ur focus is on our customers intrying to work very, very closely with them and what they want todo…and really not focus on the competition. I think if I focus onanother pipeline I’m going to be a day late and a dollar short.”

FGT is not sitting idly by as competitors eye its burgeoninggeneration market. It filed its fourth and latestexpansion/extension project at FERC this week aimed at providingtransportation service to the expanding market for powergeneration, which the pipeline believes will be largely fueled bynatural gas. “I think most of the new generation in the state ofFlorida will probably be fired by natural gas,” said Meyer. Ifapproved by the Commission, the project would make gas available tocustomers in the southwestern part of the state for the first time.

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