Construction

Construction is complete, and Transwestern Pipeline Co. hasincreased its available capacity to California by 15%, a moveproviding expansion shippers with opportunities to move incrementalvolumes from the San Juan and Permian Basins to the Californiaborder. The $12 million project was approved by FERC in mid-January(see NGI, Jan. 17, 2000).

El Paso Energy’s Petal Gas Storage said Friday it plans toproceed with the construction of a third salt cavern at itsexisting facilities in Mississippi based on the success of an openseason, which ended May 5. It noted it received service requests inexcess of the capacity proposed in the open season, and is now inthe process of evaluating the bids. The proposed expansion, ifapproved by FERC, would add 5 Bcf of working gas storage capacityto Petal’s existing storage facilities in Hattiesburg, MS, givingthe storage company a total of 15 Bcf of actual working gascapacity and 1.5 Bcf/d of withdrawal capacity.

To assist in the growing demand for electricity in the upperMidwest, Southern Energy Inc. plans to begin construction thismonth of a natural gas-fired plant in Zeeland, MI that will useadvanced natural gas combined-cycle technology and state-of-the-artemission control equipment. Commercial operations are expected tobegin in June 2001, with an initial 300 MW of capacity. Anadditional 530 MW will begin commercial operation by June 2003.

Construction is complete, and Transwestern Pipeline Co. hasincreased its available capacity to California by 15%, a moveproviding expansion shippers with opportunities to move incrementalvolumes from the San Juan and Permian Basins to the Californiaborder. The $12 million project was approved by FERC in mid-January(see Daily GPI, Jan. 13, 2000).

Phase Two of Tengasco Inc.’s pipeline system is now underconstruction following permitting by the Tennessee Department ofTransportation. The 28-mile mile project will complete the 60-milesystem, which ties Tengasco’s Swan Creek gas field into end-usermarkets in Eastern Tennessee. The pipeline is the only intrastategas carrier in Tennessee.

NGPL’s High Island Lateral will be out of service for about 12hours of construction Thursday, causing a shutdown of Station 344(Jefferson County, TX). Shippers using the HI 116 Vasgas/NGPL HI 71point will need to nominate half of their normal volumes for thatgas day.

In its order (CP99-94) approving the downsized project last week, FERCnoted that FGT had amended its plan and cut facilities for the New SmyrnaBeach Lateral that would have served a trailblazing 514 MW merchant powerplant proposed by Duke Energy and approved by the Florida Public ServiceCommission. The PSC’s certification of the power plant was appealed bythe IOUs in a case that currently is lodged in the state Supreme Court.A Duke spokesman said the company was confident its New Smyrna Beach PowerPlant ultimately would be approved, but it has dropped back from FGT’sPhase IV expansion due to go into service in May, 2001 to its Phase V expansiondue in 2002 (see NGI, Dec. 6).

Florida Gas Transmission received the go-ahead for constructionof its Phase IV expansion to serve investor-owned utilities (IOUs)and industrials in Florida, minus capacity that would have servedthe state’s first merchant power plant.

In its effort to meet the challenge of building a pipeline offthe Florida coast, Buccaneer Pipeline project sponsors saidyesterday they signed Saipem Inc./European Marine Contractors Ltd.to help construct the offshore portion of the proposed pipeline.Buccaneer, which is a joint venture between Duke Energy andWilliams, would not disclose any of the financial agreementsinvolved in the deal. Saipem/EMC has already started work on theproject, a Buccaneer spokesperson said.