Florida Gas Transmission (FGT) yesterday announced plans to buy300 MMcf/d of firm capacity in Koch Gateway Pipeline’s Mobile Baylateral. The firm space will be utilized as upstream supply accessfor FGT’s Phase V expansion project, which is expected to be filedby Dec. 1. FGT said the Mobile Bay lateral agreement will be filedas part of the Phase V expansion and will be contingent upon theexpansion project being approved.

“This lateral will provide direct access to additional naturalgas supplies in the Mobile Bay area, resulting in increasedreliability and flexibility for our customers on the FGT system,”said Rockford G. Meyer, president of FGT.

The $400 million Phase V project would add 375-425 MMcf/d offirm capacity to FGT’s mainline in spring 2002. The expansion isdesigned primarily to meet growing electricity demand in Florida.The two anchor customers for Phase V are Florida Power and Lightand Southern Company. FPL plans to use the FGT expansion to serve arepowering of its Sanford power plant in Volusia County. Southernsubsidiary Gulf Power will buy space in the project to serve a newgas-fired plant. As part of the expansion, FGT plans to construct28 miles of new pipeline and add compression and other facilitiesnecessary to connect the Mobile Bay lateral to FGT’s mainline nearCitronelle in Mobile County, AL.

“With this transaction, Koch Gateway continues to provide thegrowing North American market access to diverse Gulf Coastsupplies,” said John Gibson, president of KGPC. Koch also plans tolook into expanding the 600 MMcf/d Mobile Bay lateral, but thatwould not affect the deal with FGT.

FGT currently has its Phase IV expansion on file at FERC. Thatproject would add 139 miles of pipeline and 197 MMcf/d of firmcapacity primarily to serve FPL’s Ft. Myers power station insouthwestern Florida.

FGT is a subsidiary of Citrus Corp. that operates a 4,800-mileinterstate transmission system from South Texas to South Florida.Citrus is owned jointly by a subsidiary of Enron and El PasoEnergy.

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