The Federal Energy Regulatory Commission on Wednesday gave Gulfstream Natural Gas System LLC the go-ahead to construct the remaining portion of the 744-mile Florida natural gas pipeline in two phases to coordinate with the expansion plans of its key shipper, Florida Power & Light (FP&L), and developing gas markets in the Sunshine State.

Phase I of Gulfstream, which has been completed and is in service, extends from supply areas in Alabama and Mississippi across the Gulf of Mexico to central Florida. Phases II and III would extend the line into southeastern Florida, where it would provide 350 MDth/d of long-term firm transportation service to two FP&L power plant expansions. The total capacity of the line, when completed, will be 1.13 Bcf/d.

The proposed expansion of FP&L’s power plants in Martin and Manatee counties, FL, are expected to be in operation by May 1, 2005. Gulfstream said it anticipates that its Phase II facilities will be in service by the same date. Phase II will include the construction of approximately 105 miles of mainline facilities to Martin County, where it would connect with FP&L’s generating facility there. The Manatee plant already is tied into Gulfstream’s system. The Phase III leg of the pipeline will begin operation at a later date, according to Gulfstream. But both phases, which are estimated to cost $389 million, will be completed and in service by Feb. 21, 2006.

Gulfstream’s Phase II facilities alone will support the addition of 2,900 MW of power generation to serve more than 400,000 new customers and will increase the available competitive transportation and sale of natural gas in the Florida market, the order said.

The pipeline said it has executed a precedent agreement and related service agreement with FP&L for the 350 MDth/d of transportation service to the utility’s plants in Martin and Manatee counties.

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