NUI Corp. said it has taken two important steps in its plan to complete a natural gas pipeline across the state of Florida and to build the state’s first natural gas storage field.

In 2001, the company took the first step in its plan to build a gas pipeline from West Palm Beach to Ft. Myers, FL. Phase I of the project is currently in service from a connection to the Florida Gas Transmission system in West Palm Beach to South Bay. The remaining portions of the project are intended to include an interconnection with Florida Gas in Fort Myers and a connection with the Gulfstream Natural Gas System pipeline in Martin County.

NUI expects the pipeline to be completed in late 2005, with gas transportation service shortly thereafter. When completed, the pipeline is expected to be capable of transporting up to 300 MMcf/d of gas. NUI has retained Mustang Engineering of Houston to provide engineering-related services in support of the expansion.

Meanwhile, in conjunction with the pipeline expansion, NUI has partnered with Plains Resources Inc. to test the technical and commercial viability of developing up to 15 Bcf of working gas storage capacity in the West Felda Field in South Florida. The West Felda Field represents one of five oil-producing properties currently operated by Plains in the oil-producing “Sunniland Trend” in South Florida.

The storage field, which would be the first natural gas storage field in the state, would be connected to the East-West Pipeline, with a 12-mile southern lateral. Upon entering into final agreements, NUI and Plains intend to begin offering storage services in conjunction with the initiation of service of the pipeline.

Together the projects should provide increased reliability for Florida’s natural gas supply and distribution infrastructure and support Florida’s rapidly growing demand for natural gas utilized for electricity generation.

Bedminster, NJ-based NUI owns NUI City Gas Co. of Florida, a regulated, investor-owned natural gas utility that serves Miami-Dade, Brevard, Saint Lucie, Indian River, Martin, and Palm Beach counties, FL, including about 100,000 businesses and residences along Florida’s East Coast.

Houston-based Plains Resources is an independent energy company engaged in the acquisition, development and exploitation of crude oil and natural gas. Plains also owns Plains All American Pipeline LP.

©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.