FPL acquires purchase options on Bahamas LNG and Seafarer pipeline project

El Paso Corp., Houston, announced that FPL Group Inc., Juno Beach, Fla., acquired an option to purchase rights to an LNG terminal in the Bahamas and a related pipeline to transport natural gas from the terminal to Florida.

Jan. 26, 2004

By OGJ editors
HOUSTON, Jan. 26 -- El Paso Corp., Houston, announced that FPL Group Inc., Juno Beach, Fla., acquired an option to purchase rights to an LNG terminal in the Bahamas and a related pipeline to transport natural gas from the terminal to Florida.

The development rights concern the High Rock LNG facility on Grand Bahama Island. FPL also obtained an option to purchase a 50% equity interest in the proposed Seafarer pipeline system. Terms of the agreements were not disclosed.

"We believe this project provides the best solution to bringing a critical fuel source for a region expected to demand an additional 2 bcf by 2010. This agreement also supports El Paso's long-range plan by growing our pipeline business�in North America," said John W. Somerhalder II, president of El Paso's regulated group.

The 128 mile, 26-in Seafarer pipeline system will have a design capacity of 750 MMcfd and is expected to be in service by 2008.