FIRM SHIPPERS SOUGHT FOR GAS PIPELINE PROPOSED FOR WEST SIDE OF FLORIDA
Sonat Inc., Birmingham, is seeking firm transportation customers for a proposed 200 mile, 260 MMcfd Florida intrastate gas pipeline.
Peninsula Pipeline Co. (PenPipe) would consist of a 20-24 in. line from Sonat's South Georgia Natural Gas Co. pipeline in northern Florida to growing gas markets in the central part of the state. PenPipe is to include loops and compressor horsepower on the interstate systems of South Georgia and Southern Natural Gas Co.
South Georgia ties into Southern Natural's main line system in eastern Alabama, near the Georgia state line just west of Columbus, Ga.
Cost of the PenPipe project is estimated at $230-320 million.
PenPipe's construction is to follow the second phase of development on an 85 mile extension from South Georgia's pipeline in North Central Florida to Jacksonville that was placed in service in 1991. Phase 2 construction is to double capacity of the Jacksonville extension to 80 MMcfd in 1994.
The open season for firm transportation capacity will last through Aug. 31. Also during the open season, Sonat will consider offers for equity participation in PenPipe.
Sonat has set target dates of:
- Oct. 31 for signing definitive agreements with prospective firm shippers.
- Dec. 31 for filing applications for government approval of construction permits.
Sonat plans to file for PenPipe construction permits as soon as enough firm transportation customers commit to the project. Assuming subscriptions totaling at least 170 MMcfd, Sonat estimated firm transportation on PenPipe will cost about 8-12cts/MMBTU. At that rate, the total cost of shipping gas across the Southern Natural, South Georgia, and PenPipe systems will be 61-65cts/MMBTU.
PenPipe could transport as much as 260 MMcfd of gas beginning in February 1996.
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