Gulfstream Natural Gas System has filed an amendment to its FERC application that will modify its Phase II extension project across Florida, adding some additional transportation service in 2004, delaying a portion until 2006 and making rate changes to reflect the new design. The changes reflect the needs of Florida Power & Light, the pipeline’s main customer for the project.

“We are diligently preparing for the next phase of pipeline construction, which will extend Gulfstream’s reach to directly serve Florida’s east coast natural gas markets,” said Guy Buckley, Gulfstream senior vice president and general manager. “The amendment filed today keeps us moving in that direction, with no material change to the facilities or route that have already been evaluated by the Commission.”

The amendment will increases the diameter of a five-mile segment of pipe in Martin County from 24 inches to 30 inches. It also anticipates construction completion of certain Phase II facilities required to serve FPL’s Martin power plant by the fourth quarter 2004. The remaining facilities in St. Lucie, Martin and Palm Beach counties would be identified as Phase III and wouldn’t be placed into service until February 2006. The amendment also modifies the initial recourse rates to reflect updated construction costs.

Gulfstream’s Phase II pipeline construction will extend its Florida mainline by 110 miles from Polk County to FPL’s Martin power plant in Martin County. Phase II construction is expected to begin next spring. It is the result of a 23-year agreement to provide FPL with 350 MMcf/d of firm transportation for its Martin and Manatee power plant expansions. FPL plans to add one natural gas-fired, combined-cycle generating unit to its existing Manatee plant site in Parrish, FL, and another to its existing Martin plant site in Indiantown. The two units, totaling 1,900 MW will serve an additional 400,000 customers beginning in mid 2005.

FERC approved the construction and operation of the Gulfstream pipeline project in February 2001. Gulfstream later received permission to phase construction — placing 581 miles of pipeline with 1.1 Bcf/d of transportation capacity in service last May. Gulfstream is a joint development of Williams and Duke Energy.

©Copyright 2003 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.