Coastal plans natural gas line supplying Florida

Oct. 25, 1999
Coastal Corp., Houston, has applied to the US Federal Energy Regulatory Commission to build and operate a 1.1 bcf/day gas pipeline serving the growing Florida market.

Coastal Corp., Houston, has applied to the US Federal Energy Regulatory Commission to build and operate a 1.1 bcf/day gas pipeline serving the growing Florida market.

The 744-mile line would originate near Mobile, Ala., and cross the Gulf of Mexico with more than 400 miles of 36-in. line to Manatee County, Fla. In Florida, 292 miles of mainline and laterals, ranging in size from 16 in. to 36 in., would deliver gas to electricity generation plants.

The line will terminate on Florida's East Coast (see map).

Construction of the $1.6 billion project is due to start in June 2001. The line would go into service a year later.

Coastal said 10 nonaffiliated utility and power-production customers have made long-term, binding commitments for capacity on the system, with additional commitments expected soon.

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David Arledge, Coastal chairman, president, and CEO, said, "The Gulfstream Natural Gas System will provide economically priced capacity to deliver the additional supplies of clean-burning natural gas that Florida needs, with a route design that is in keeping with our commitment to environmental stewardship."

The Florida Public Service Commission has predicted the state will need more than 9,600 Mw of additional generating capacity by 2007. Coastal said its project could meet half of the additional demand for gas.

Williams of Tulsa and Duke Energy Corp. of Charlotte, NC, also have announced plans to build gas lines from Alabama to Florida.

Arledge said Gulfstream will meet or exceed all governmental safety, health, and environmental regulations. For instance, he said, Coastal consulted federal, state, and local permitting agencies and adopted a "team permitting" process that allowed all interested stakeholders to help set conditions for the Florida environmental resource permit.

"This cooperative sharing of data enabled Gulfstream to avoid known sensitive habitats and develop field survey protocols used in identifying and avoiding sensitive areas such as `live bottom' habitats in Tampa Bay," the company said.

Coastal has increased its Mobile Bay area midstream holdings in recent weeks.

Early this month, the firm's Coastal Field Services Co. subsidiary bought an additional 27.9% of Mobile Bay Processing Partners, bringing its ownership to 42.4%. The partnership owns a gas processing plant and cogeneration facility near Coden, Ala. The 40-Mw cogeneration facility supplies the power requirements of the 600 MMcfd processing plant.

Also, the subsidiary Coastal Dau- phin Island Co. bought another 27.6% of Gulf Coast NGL Pipeline, bringing its ownership to 42.1% in a gas liquids line between Mobile Bay and fractionators in Louisiana.