El Paso proposes offshore pipeline to serve Florida power plants

By the OGJ Online Staff

HOUSTON, Oct. 2, 2001 – El Paso Corp. Tuesday reported plans to explore customer interest in a pipeline that would transport natural gas from the company’s proposed liquefied natural gas terminal in the Bahamas to Florida.

Two subsidiaries will conduct separate nonbinding open seasons to transport gas from a terminal on Grand Bahama Island. The proposed 24-in. pipelines will have the capacity to deliver up to 800 MMcfd of natural gas and are expected to be in service in the summer of 2004.

El Paso said the projects will help supply the fuel requirements of 11,000 Mw of new generating capacity by 2005. The capacity additions are based on 2001, 10-year plans filed by Florida’s generation utilities.

This projected demand will require over 2,000 MMcfd of additional delivery capacity and gas supply, El Paso said.

Bahama Cay Pipeline System, Ltd., a Bahamian pipeline subsidiary of El Paso Corp., is conducting an open season for transportation capacity on Bahama Cay international pipeline, an 88-mile pipeline that will transport regasified LNG from the planned terminal to the boundary of the US’ Exclusive Economic Zone (EEZ).

ANR Southern Pipeline Co., a domestic pipeline subsidiary of El Paso, is conducting a separate open season for transportation capacity on Bahama Cay pipeline system, a 37-mile pipeline that will deliver gas from an interconnection with the Bahama Cay international pipeline at the boundary of the EEZ to onshore Florida near the Port of Palm Beach.

From there, it will extend to interconnect with shipper facilities and with the existing interstate pipeline system operated by Florida Gas Transmission Corp. The majority of the domestic pipeline will be located offshore and will be regulated by the Federal Energy Regulatory Commission. The open seasons will be held Oct. 2-26.

E. J. Holm, CEO of El Paso’s Eastern Pipeline Group, said the projects will provide shippers with increased access to competitively priced natural gas supplies with the additional advantage of having the delivery point located in southern Florida – one of the nation’s “premier growth markets for new energy demand.”

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