Pipeline &
Gas Journal
January issue 2000:
Taking Care Of The Environment
Florida Gas Transmission
To Expand & Extend Network
by M. Jordan Hunter Florida Gas Transmission Phase IV & V/Project Director
When Florida Gas Transmission Company (FGT) celebrated its 40th year of transporting
natural gas to the State of Florida last year, it was hard at work on another pipeline
expansion. It’s called the Florida Gas Transmission Phase IV project and will extend
and expand the company’s existing pipeline network to serve existing and new
customers with minimal impact on the environment.
The company, which is an Enron-El Paso Energy affiliate, anticipates receipt of the final
Environmental Impact Statement and Certificate of Public Convenience and Necessity from
the Federal Energy Regulatory Commission (FERC) for the Phase IV Expansion in early 2000.
Construction is scheduled to kick-off at the end of the first quarter.
The $268 million, 139-mile pipeline expansion project includes the addition of over 38,000
horsepower and modification of compressor facilities at various locations in Florida. The
project will increase Florida Gas Transmission’s 1.5 Bcf/d capacity to the Florida
market by 272 MMcf/d. (It is interesting to note that this expansion approximates the size
of the original Florida Gas Transmission system in 1959.)
In addition to increasing system reliability, the Phase IV Expansion will make major
supplies of natural gas available to southwestern Florida for the first time. In fact,
over 90 percent of the load from the expansion is under contract to Florida Power &
Light Company for its Fort Myers Power Generating Station. Repowering of the Fort Myers
Plant will enable Florida Power & Light to nearly triple the capacity of the
40-year-old facility to approximately 1,500 MW, while significantly improving its
efficiency and environmental performance by fueling it with natural gas.
In addition, one natural gas local distribution company and two industrial customers will
be served through the Phase IV Expansion.
Because of its long-standing relationship with the
people of Florida and the company’s commitment to provide clean energy safely and
reliably, FGT sought reaction from landowners and neighbors before it filed its
application with the FERC for approval of the project and the route. The feedback from
open houses, a 1-800 telephone number, project newsletter and website all have helped FGT
select the best route, based on all factors involved.
That commitment to open, two-way communication is ongoing. During construction of the
Phase IV Expansion and while restoration of the route is being performed, landowners will
be able to pick up the phone and get the company’s immediate attention regarding any
potential environmental mitigation problems or concerns. Also, during construction and
restoration, FGT will take special precautions for residences near the construction work
and will directionally drill under all rivers greater than 100 feet wide.
Particular efforts will also be made to protect federally listed endangered or threatened
species that may live in the counties along the route. The company and its contractors for
the project are committed to complying with all applicable environmental, health and
safety laws and regulations. The U.S. Department of Transportation’s regulations, (49
C.F.R. Part 192) are the minimum standard for construction.
FGT intends to use the latest in metallurgical innovation (API 5L X-70) for its 26- to
36-inch pipe as well as the latest in coating technology. It will use 100 percent
radiography. The compressors for the project will be the latest in turbine equipment
available, meeting very stringent air quality standards. In addition, FGT is in the
forefront of the industry, working with major contractors to resolve construction issues
challenging traditional pipeline company-contractor relationships.
When It All Started
The original Florida Gas Transmission system was placed in service in June 1959. However,
it wasn’t named Florida Gas Transmission and it wasn’t one system but was
actually two pipeline systems. The western portion of the system, which ran from south
Texas to Baton Rouge, was named the Coastal Transmission Corporation. From Baton Rouge,
LA, to the terminus in south Florida, the system was known as Houston Texas Gas & Oil
Corporation. Collectively, the two systems included 2,712 miles with a capacity to deliver
275 MMcf/d into the State of Florida. Over the next 40 years, the system was expanded
eight times and now has a capacity of 1.5 Bcf/d. These expansions were necessitated by the
growing needs of all customer classes: local distributors, electric utilities and
industrial end-users.
Today, the FGT system consists of three pipelines servicing the state: a 36-inch, a
30-inch and the original 24-inch systems. Its system serves every major population center
except the southwest portion of the state and interconnects with every major pipeline
company in the Gulf Coast area, thereby providing an abundance of supply options
throughout Texas, Louisiana, Mississippi and Alabama, from both onshore and offshore
sources.
Natural Gas Preferred By Electric Generators
Florida Gas Transmission’s largest customer base has always been the power generation
market. In 1960, almost two-thirds of FGT’s load was for power generation compared to
just over two-thirds today. However, the diversity of Florida Gas Transmission’s
customer base has been a key ingredient in allowing the pipeline to operate at a high
utilization year-round while keeping rates low. Thus, the growth in the commercial,
residential, and industrial markets, (markets historically served by FGT’s local
distribution customers), has been an important ingredient in FGT’s success.
The principal markets served by FGT’s local distribution customers have grown over
250 MMcf/d since 1960. FGT is one of only a very few pipelines with long-term seasonal
contracts and probably the only pipeline with seasonal contracts that are at almost full
capacity year-round.
Future Expansions Will Grow Existing Network
FGT filed its Phase V Expansion Dec. 1, 1999. It anticipates that construction of Phase V
will begin in March 2001. The project is scheduled to be completed and placed into service
by spring 2002. Approval of that filing means that the FGT system will be able to access
every major metropolitan market, supplying over 1.7 MMcf/d of natural gas through 5,000
miles of pipeline. A Phase VI expansion may be announced as early as mid-2000.
FGT plans to add 231 miles of pipeline and approximately 90,000 horsepower of compression
and associated facilities. Through the $438 million proposed Phase V Expansion, FGT will
provide approximately 400 MMcf/d of incremental firm transportation service. This
application is supported by 20-year firm service agreements for incremental capacity and
complies fully with the new FERC rules concerning balancing the interests of the public,
including gas consumers, the environment and landowners. The filing includes extensive
data concerning the environmental impacts of the project.
FGT is also acquiring an undivided interest in the Koch Gateway Pipeline Company (KGPC)
Mobile Bay lateral. Subject to federal approval, FGT will own 300 MMcf/d of capacity and
KGPC will continue to operate the lateral. The sale is expected to close in spring 2002 to
coincide with the in-service date of Phase V. As part of Phase V, FGT plans to construct
approximately 28 miles of new pipeline and add compression and other facilities necessary
to connect the Mobile Bay lateral to FGT’s mainline near Citronelle in Mobile County,
AL.
Population growth will fuel the need for more power generation because Florida’s
population continues to expand, adding more than 2.4 million people over the next decade.
FGT estimates the State of Florida will need 50 gigawatt hours of additional electric
generation in the next decade.
Florida’s demands for more natural gas are not an aberration. The Energy Information
Administration estimates the national market will grow to 28 Tcf by 2010 and 32 Tcf by
2020. Nationally, the electric generation market accounts for the majority of the growth
from the current 22 Tcf level.
FGT’s strategy for the next decade will be a continuation of what it has done over
the last 10 years:
• Operate our pipelines safely and reliably,
• Propose and implement system expansions that stay a step in front of the growth
demand, demonstrating our ability to expand our system with minimal impact on the
environment and our neighbors,
• Structure agreements that meet our customers’ needs.
While the last 40 years have been phenomenal, Florida Gas Transmission believes the best
is yet to come. The company remains committed to serving the people of Florida and their
energy needs. P&GJ
M. Jordan Hunter has 38 years of experience in the pipeline construction business. He has worked both onshore and offshore, as well as on international projects. Hunter is Director of Construction for Enron Engineering & Construction Company and is assigned to the Florida Gas Transmission Phase IV and V Expansion projects as Project Director. A University of Houston graduate with a Bachelor of Science degree in Mathematics with Mechanical Engineering as a minor, Jordan worked for many years with Transco before joining S&H Diving/Sonat Services (Americas), Inc. and Eastport International. He joined Enron in 1991.