Calypso U.S. Pipeline LLC has notified FERC that it has abandoned its undersea pipeline project, which was destined to deliver regasified liquefied natural gas (LNG) from a deepwater port offshore Florida to customers in the Sunshine State.

The pipeline project, which was initially conceived as an international line to bring in regasified LNG from the Bahamas, has had a long and tortuous history at the Federal Energy Regulatory Commission. Initially approved in March 2004, the design of the pipeline changed over the years.

Initially it was expected to deliver regasified LNG to a connection with Florida Gas Transmission in central Broward County, FL, from a proposed Bahamian pipeline at the exclusive economic zone international boundary. But because Bahamian regulators were dragging their feet on approving their part of the pipeline and related LNG facility, the project devolved into one where the Calypso pipeline would deliver regasified gas to Florida from a U.S. LNG facility– one that was affiliated with Calypso (see Daily GPI, April 5, 2006).

The abandonment of the pipeline project does not come as a surprise, given that Calypso LNG LLC, a subsidiary of GDF SUEZ Energy North America Inc., withdrew in February 2009 its application for a deepwater port license to build a LNG facility off the southeastern coast of Florida (see Daily GPI, Feb. 27, 2009). The proposed pipeline hinged on the deepwater port being built. The line would have been capable of delivering more than 1 Bcf/d of natural gas into the Florida market.

Last year FERC’s director of the Office of Energy Projects gave Calypso U.S. Pipeline until June 30, 2012 to complete the project. “In the intervening time, Calypso has decided to abandon the project. Accordingly, by this submission Calypso is surrendering its authorization and its presidential permit,” wrote Vice President Paul J. Cavicchi in a letter to the Commission.

“Although we regret that the project could not reach a successful conclusion, Calypso thanks the Commission and its staff for the professional and skilled attention its applications and various submissions have received during the years the development of this project has consumed.”

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