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Gulfstream Inks Long-Term Transportation Deal with Tampa Electric

Williams and Duke Energy announced last week that their Gulfstream Natural Gas pipeline system from the Mobile Bay area to the Florida peninsula signed a new 48,000 Dth/d long-term transportation agreement with Teco Energy utility subsidiary Tampa Electric last week, making the pipeline system about 70% subscribed.

The new contract provides transportation to serve the H.L. Culbreath Bayside power generation facility in Hillsborough County, FL. Teco intends to construct a 28-mile pipeline from its Bayside generation facility to receive gas from Gulfstream's mainline in Manatee County, FL. Until the lateral is completed in 2007, Teco will use the transportation capacity under the service agreement to receive gas from other delivery points.

"A dependable fuel supply for Bayside Power Station, which this pipeline project will fulfill, is key to Tampa Electric being able to continue providing reliable production of electricity for all our current and future customers," said Bruce Christmas, vice president of fuels management for Tampa Electric.

Gulfstream has a total capacity to carry about 1,095,000 Dth/d of gas 691 miles from Pascagoula, MS, and Mobile, AL, across the Gulf of Mexico to landfall near Tampa and then across the peninsula. Once onshore, 240 miles of 30 to 36-inch-diameter mainline crosses Manatee, Hardee, Polk, Osceola, Highlands, Okeechobee and Martin counties.

Gulfstream placed a 110-mile extension in service in February to Florida's east coast. The Phase II facilities were part of a 23-year agreement to provide up to 350 MMcf/d of natural gas transportation to serve Florida Power & Light's new gas-fired generation facilities at the Martin and Manatee power plants.

Tampa Electric Co. provides retail electric service to 625,000 customers in west central Florida.

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