Sabal Trail Transmission LLC, a joint venture of Spectra and NextEra Energy Inc., has been named the winning bidder to build a 465-mile interstate natural gas pipeline project proposed by Florida Power & Light (FPL) to provide gas for its power generations needs beginning in May 2017.
“Spectra is extremely pleased to have secured the bid to build and operate this interstate natural gas pipeline as a result of our competitive response to FPL’s request for proposal [RFP],” said Bill Yardley, president of Spectra Energy’s transmission and storage business. FPL, the largest power company in the state, put out the RFP for a new pipeline last December (see Daily GPI, Dec. 11, 2012).
Sabal Trail pipeline, which will have an estimated price tag of $3 billion, will originate in Tallapoosa County, AL, extend through Georgia and terminate at the Central Florida Hub near Orlando (see Daily GPI, July 8). Through a capacity lease with Transcontinental Gas Pipe Line (Transco), natural gas supply will be accessed at Transco’s Station 85 in Choctaw County, AL.
The pipeline, when completed, will have the capacity to transport more than 1 Bcf/d of gas to serve local distribution companies, industrial users and natural gas-fired power generators. According to the Energy Information Administration, Florida generates 62% of its power from 1.1 Tcf of natural gas.
Florida Gas Transmission, Southern Natural Gas, Gulfstream Natural Gas System LLC and Cypress Pipeline reportedly had been in the running to add capacity into the state. FPL would say only that it had received a few proposals from pipelines.
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