FGT Kicks Off Construction of Phase IV Project

Florida Gas Transmission has started construction on its Phase IV expansion project, which includes a new pipeline to Fort Myers from Tampa. The project, initiating in Hillsboro and Lee Counties, FL, will provide 197 MMcf/d of incremental firm transportation service on an annual basis and will extend FGT's 4,700-mile existing transmission system by 139 miles.

"Initiation of construction on this expansion reinforces FGT's ability to meet the growing energy needs of Florida today and tomorrow," said Rockford G. Meyer, president of FGT. "We are pleased to make gas available to Southwest Florida for the first time through our expansion into the Fort Myers area."

With an expected in-service date of May 2001, the $268 million Phase IV project will add more than 38,000 hp of compression in Mississippi, Alabama and Florida and 205 miles of pipeline (laterals and looping).

The start-up of the Phase IV expansion is being scheduled to coincide with the operation of Florida Power and Light's (FP&L) repowered gas-fired generation facility in Ft. Myers. FP&L will be the largest shipper on FGT's latest expansion project. Other shippers that have signed up for new FGT capacity include: Florida Power Corp., Kissimmee Utility Authority, Florida Municipal Power Agency, Peoples Gas, Georgia-Pacific Corp., National Gypsum, and Enron Capital & Trade Resources. All have executed 20-year service agreements.

To meet the expected surge in gas demand for power generation, the FGT expansion would tie into Destin Pipeline LLC and Transcontinental Gas Pipe Line's Citronelle interconnect on its Mobile Bay Line. These would give Florida customers access to deep-water gas supplies being developed in the federal offshore area of the Gulf of Mexico. FGT is expected to add a total of about 600 MMcf/d of incremental mainline capacity in Florida via its VI and V expansions.

Rocco Canonica

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