Spectra

Sabal Trail Transmission LLC, a joint venture of Spectra Energy and NextEra Energy Inc., has been named the winning bidder to build a 465-mile interstate natural gas pipeline project by Florida Power & Light (FPL) to provide transportation services for its power generations needs beginning in May 2017. FPL, the largest power company in the state, put out the request for proposals for a new pipeline in December. Sabal Trail would have an estimated price tag of $3 billion and originate in Tallapoosa County, AL, extend through Georgia and terminate at the Central Florida Hub near Orlando (see NGI, July 8). Through a capacity lease with Transcontinental Gas Pipe Line (Transco), natural gas supply would be accessed at Transco’s Station 85 in Choctaw County, AL. The pipeline, when completed, would have the capacity to transport more than 1 Bcf/d 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.

The Sand Hills and Southern Hills natural gas liquids (NGL) pipelines have entered service, according to DCP Midstream, Phillips 66 and Spectra Energy Corp., which each own a one-third interest in the pipelines. The 720-mile Sand Hills is transporting NGL from the Permian Basin and Eagle Ford Shale. The 800-mile Southern Hills is transporting NGL from production in the Midcontinent. “DCP Midstream will have an integrated NGL pipeline system, consisting of Sand Hills and Southern Hills as well as our interests in the Front Range and Texas Express pipelines, that connect our gathering and processing systems located in most of the major liquids-rich and oil-driven shale plays to growing Gulf Coast markets,” said DCP Midstream CEO Wouter van Kempen.

Canada Minister of International Trade Ed Fast said his country is an “energy superpower” that “must” export more oil and natural gas to Asian markets in announcing plans for a trade mission to China and Japan in hopes of increasing exports.

Denver-based DCP Midstream Partners LP announced a $626 million dropdown from DCP Midstream of an additional 47% interest in its Eagle Ford joint venture, bringing its ownership to 80%. It’s the largest dropdown in the history of the partnership.

Cold temperatures in the Northeast have prompted constraints on Spectra Energy’s Algonquin Gas Transmission and Maritimes & Northeast (M&N) Pipeline, according to customer notices on the pipelines’ bulletin boards.

DCP Midstream LLC is in the process of doubling its natural gas processing capacity in the Denver-Julesburg (DJ) Basin by the end of 2014 as drilling and completion technologies unlock more gas, the company said.

Due to forecasted lower demand this weekend and limited operational flexibility to manage imbalances, three Spectra Energy pipes — Texas Eastern, Algonquin and East Tennessee — are requiring operators of all receipt and delivery points to maintain flat or negative imbalances for the gas days of Saturday and Sunday.

El Paso Corp. and Spectra Energy Corp. said their Marcellus Ethane Pipeline System (MEPS) (see Shale Daily, Oct. 26, 2010) is holding a 30-day binding open season for shippers that desire ethane transportation service from West Virginia and Pennsylvania Marcellus Shale supply areas to destination interconnect points with third-party ethane pipelines or storage facilities in the Gulf Coast area. The MEPS project is being designed to transport up to 90,000 b/d and has an anticipated in-service date of 4Q 2014. The open season will close at 5 p.m. EDT on July 27. For more information visit www.elpaso.com/midstream.

Bulging natural gas liquids (NGL) supplies in the Midcontinent have prompted a plan to carry the bounty to more lucrative Gulf of Mexico region markets.