In its effort to meet the challenge of building a pipeline offthe Florida coast, Buccaneer Pipeline project sponsors saidyesterday they signed Saipem Inc./European Marine Contractors Ltd.to help construct the offshore portion of the proposed pipeline.Buccaneer, which is a joint venture between Duke Energy andWilliams, would not disclose any of the financial agreementsinvolved in the deal. Saipem/EMC has already started work on theproject, a Buccaneer spokesperson said.

Under the terms of the agreement, Saipem/EMC will provideengineering support during the design phase and construct 400 milesof 36-inch diameter pipeline from the coast of Alabama to theeastern coast of Florida. The pipeline will be installed in waterdepths ranging from 20 feet up to 500 feet. Detailed engineeringwork for the project commenced last January.

The 674-mile system is proposed to have 411 miles of 36-inchpipeline extending from Mobile County, AL, across the Gulf ofMexico to Pasco County, FL. An additional 121 miles of 36-inchmainline and 142 miles of 16- to 30-inch laterals are designed todeliver gas to power generation facilities and other gas usersthroughout the state. The $1.5 billion project was filed with FERCon Oct. 28, 1999. It has a targeted in-service date of April 1,2002.

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