By the OGJ Online Staff
HOUSTON, Feb. 21�The US Federal Energy Regulatory Commission Wednesday approved the construction of the $1.7 billion Gulfstream gas pipeline from Mobile Bay, Ala., across the Gulf of Mexico to central Florida.
It will be the largest pipeline construction project yet in the gulf. Completion is due in 2 years.
Gulfstream Natural Gas System LLC will build and operate the 753-mile, 1.13 bcfd line supplying gas distribution companies and power generators in central and eastern Florida.
FERC Chairman Curt Hebert Jr. said, "I am delighted that we have been able to approve this pipeline project. It is critical that natural gas can be moved to markets that need it. The commission will do its part to avoid undue delay while ensuring that proper consideration is given to landowners and environmental concerns."
The FERC action affirmed its preliminary determination issued last April. That order said the pipeline would increase competition in the transportation and sale of gas in Florida.
FERC said additional gas service is needed in Florida to meet substantial increases in consumption driven by population growth in the next 10-20 years.
Gulfstream must adhere to mitigation measures contained in an environmental impact statement the FERC staff issued in January.
Gulfstream has proposed building supply area facilities in Alabama and Mississippi. It plans to install the 437 miles of 36-in. concrete-coated pipe across the gulf to Manatee County, Fla., beginning in the second half of 2001. From there, 292 miles of mainline and laterals, ranging from 16-in. to 36-in., will extend across Florida and terminate in Palm Beach.
Gulfstream recently notified FERC that effective Feb. 1 affiliates of Duke Energy Corp. and Williams bought Coastal Corp.'s interests in Gulfstream, suspending their own Alabama-to-Florida project, the Buccaneer pipeline (OGJ Online, Nov. 17, 2000).
