Gulfstream Natural Gas System LLC has filed an application seeking to make changes to the length, diameter and route of the planned Phase III expansion of its natural gas pipeline system in Florida.
The pipeline, which is jointly owned by Duke Energy and The Williams Cos., has asked the Federal Energy Regulatory Commission to amend an October 2003 order approving the Phase III project — a 32.14 mile, 24-inch diameter extension of its current line. Gulfstream now is proposing that the line be 34.3 miles in length, extending from the pipeline’s terminus in Martin County, FL, to Palm Beach County, and that the diameter be 30 inches [CP00-6-014].
In addition, Gulfstream has proposed a route change. Approximately 7.1 miles of the 34.3-mile segment would follow the previously approved route for the Phase III expansion facilities, the company’s application said.
Gulfstream has requested the changes so that it can provide firm transportation service for Florida Power & Light Co.’s (FPL) proposed 2,200 MW greenfield power generation station in Palm Beach County, which is known as the West County Energy Center. FPL, the anchor shipper on the Phase III expansion, has executed an agreement for the entire expansion capacity (345,000 Dth/d) for a term of 23 years, Gulfstream said.
Under Gulfstream’s agreement with FPL, 185,000 Dth/d will become available on July 1, 2008 to supply FPL’s initial fuel needs for its proposed West County Energy Center. The full capacity of 345,000 Dth/d is expected to be available by June 1, 2009.
Gulfstream called on the Commission to act on its request by June 1, 2007 to ensure that the expansion will be completed and placed into service to meet the in-service date of FPL’s West County Energy Center.
The October 2003 order required Gulfstream to complete and place the Phase III expansion facilities in service by Feb. 21, 2007. The pipeline asked FERC to extend that deadline in light of the proposed changes to the project.
Gulfstream also asked called on FERC to modify its initial recourse rates for the Phase III expansion to reflect the updated capital cost estimate for the project. It put the cost of the revised project at $129 million. “This revised capital cost estimate results in lower Phase III initial rates than the initial rates currently approved by the Commission,” the pipeline said in its filing.
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