AES Ocean Express LLC has won draft environmental clearance from FERC to build the U.S. leg of a mostly subsea pipeline that would transport vaporized gas from a proposed liquefied natural gas (LNG) terminal in the Bahamas to southern Florida.

The project would have “limited adverse environmental impact” if the recommended mitigating measures are implemented, FERC staff said in its draft environmental impact statement (DEIS) on the AES Ocean pipeline [CP02-90-001].

The Commission issued a preliminary determination (PD) for the AES Ocean project in early April, and gave a boost as well to two other LNG projects in a show of support for the gas industry’s move in that direction (see NGI, April 14). The proposed 54.3-mile line, 48 miles of which would be under water, would transport gas to Broward County, FL, from the proposed terminus of a 40-mile non-jurisdictional line at the Exclusive Economic Zone (EEZ) boundary between the United States and the Bahamas.

The $440 million Ocean Express pipeline would extend to interconnections with Florida Gas Transmission (FGT) and Florida Power and Light’s distribution system near its Fort Lauderdale power plant. It would transport 842,000 Dth/d of gas, the majority of which has been contracted by affiliate AES LNG Marketing. The project is expected to start making deliveries to consumers in either late 2005 or mid-2006, according to the timeline provided by AES Ocean on its web site.

AES Ocean hopes that it will receive a final FERC certificate, as well as other federal and state permits, by September so that it can begin construction of the pipeline during the fourth quarter.

Affiliate AES Ocean LNG Ltd. proposes to construct a Bahamian import terminal, and vaporization, storage and send-out facilities in Ocean Cay, Bahamas, as well as the 40-mile Bahamian Pipeline that would extend to the EEZ boundary. The facilities are expected to be in service by 2006, the company reports.

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