The U.S. House is expected to vote today on an energy appropriations bill that, among other things, will attempt to block construction of the 744-mile Gulfstream Natural Gas System pipeline project that would transport gas from Mobile Bay, AL, across the Gulf of Mexico to the ever-expanding Florida market.

The anti-Gulfstream provision, which is part of an Energy and Water Development Appropriations bill, would bar the Federal Energy Regulatory Commission from using any funds allocated under the legislation “or any other act” to “complete the remaining reviews and issue further authorizations to proceed” with the construction of the Gulfstream pipeline project. The spending measure was voted out by the House Appropriations Committee earlier this week.

Chairman Sonny Callahan (R-AL) of the of the House Appropriations subcommittee on energy and water development and ranking Democrat Rep. Peter Visclosky of Indiana sponsored the amendment.

“We really don’t anticipate this [provision] having any affect” on the future of the Gulfstream project, which is co-sponsored by Duke Energy and Williams, said Chris Stockton, a Gulfstream spokesman. FERC has already approved the project and, in fact, the companies plan to begin laying pipe in the Gulf this weekend.

The measure is an attempt by Callahan to block Alabama gas resources from being transported to Florida markets, he indicated. “They’re very protective of their gas interests there.” Callahan would prefer that Florida become gas self-sufficient by drilling off of its own coasts.

It appears Gulfstream “is caught in the middle” of a skirmish on Capitol Hill between House lawmakers who favor Florida drilling over Gulfstream, such as Callahan, and those — primarily the Florida delegation — who back the Gulfstream project as an alternative to exploration and production in offshore Florida, Stockton said.

The Republican-led House last week passed legislation that would bar offshore drilling in the eastern Gulf of Mexico until April 2002, and halt the controversial Lease Sale 181 off the coast of Florida that the Interior Department has scheduled for December of this year. The measure faces an uncertain fate in the Democratic-controlled Senate, and would likely be opposed by President Bush.

FERC issued a certificate for the $1.7 billion Gulfstream project last February. The pipeline, which is targeted for in-service on June 1, 2002, will offer Florida customers pipeline-on-pipeline competition for the first time ever. The market has been dominated by Florida Gas Transmission.

When completed, the Gulfstream pipeline will run from Mobile Bay, AL, under the Gulf of Mexico and come ashore on the west coast of Florida near Tampa, where it will supply 1.13 Bcf/d of natural gas to the growing power generation market in the state. The pipeline, of which more than half will be underwater (400 miles), is nearly 100% subscribed, according to the sponsors.

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