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Gulfstream Seeks Bids on Installing 400 Miles of 36" Pipe

Gulfstream Seeks Bids on Installing 400 Miles of 36" Pipe

Coastal Corp.'s Gulfstream Natural Gas System has sent a request for quotation (RFQ) to 10 pre-qualified contractors for installation of the offshore portion of its proposed 744-mile natural gas pipeline from Alabama across the Gulf of Mexico to Florida.

The RFQ calls for offshore assembly and installation of more than 400 miles of 36-inch diameter pipe to to serve Gulfstream's customers in Florida. The pipeline says it has 10 large, non-affiliated Florida utilities and power generation facilities signed to long-term commitments for the majority of its capacity. Gulfstream is one of two large under-the-Gulf pipelines proposed to serve the Florida Peninsula. The Federal Energy Regulatory Commission last month issued preliminary approvals for both Gulfstream and Buccaneer pipelines, each of which proposes to carry about a Bcf/d into the state. The latter is sponsored by Williams and Duke Energy. (See NGI, May 1)

It is unlikely that two pipelines will be built. Complicating things is the fact that Coastal is in the process of being acquired by El Paso Energy, which has an interest in Florida Gas Transmission, currently the only interstate delivering to Florida. FGT also has expansion plans to meet the expected demand of new power generation facilities. The Coastal/El Paso merger is expected to be completed in the fourth quarter. (See NGI, May 8)

"We bring 25 years of proven experience in offshore pipeline construction and operation to the Gulfstream project," said Jeffrey A. Connelly, Coastal's senior vice president, natural gas. Gulfstream is scheduled to receive bids from contractors by the end of this month. Final environmental and routing approvals are expected from by March 2001.

Ellen Beswick

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