Florida Gas Transmission Co. (FGT) and Williams Partners L.P. on Wednesday announced that the Federal Energy Regulatory Commission (FERC) has approved a proposal to connect the existing FGT and Transco natural gas pipeline systems with the new Gulf LNG Clean Energy import terminal being developed near Pascagoula, Miss.
Additionally, FGT received FERC approval for its Mobile Bay Lateral Extension Project. FGT will build, own and operate an approximately 9-mile, 24-inch-diameter pipeline that would provide access to FGT's mainline by extending south from the current terminus of FGT's Mobile Bay Lateral to connect with the proposed Pascagoula Expansion Project and the jointly-owned Mobile Bay Lateral. This part of the expansion would also include some modifications to FGT's existing compressor station in that area.
The Pascagoula Expansion Project, a partnership between FGT and Williams' Transco pipeline, will consist of approximately 15.54 miles of 26-inch diameter pipe located in portions of Mobile County, Ala. (4.59 miles), and Jackson County, Miss. (10.95 miles). The $59 million pipeline project will have the capacity to transport approximately 810,000 dekatherms of natural gas per day by its in-service date in the late summer of 2011. The project has been fully contracted with Angola LNG Supply Services LLC. Construction is scheduled to begin in April 2011.
"The Pascagoula Expansion Project leverages existing pipeline infrastructure to provide robust southeastern markets with access to additional natural gas supplies," the project sponsors said in a statement. "We appreciate the FERC's thorough review of this project. With the certificate now in hand, we can move forward with linking to this important new supply source."
The Gulf LNG Clean Energy import terminal is currently under development and scheduled to be placed into service in the fall of 2011.
Angola LNG Supply Services LLC (ALSS) is a Delaware limited liability company owned by affiliates of Sonangol, Chevron, BP, Total and ENI. ALSS will purchase liquefied natural gas (LNG) from a 5.2 million metric ton liquefaction plant currently under construction on the Congo River in northern Angola, and transport it to the U.S. via ships to a LNG receiving terminal under construction in Pascagoula, Miss. The ALSS offices are in Houston, Texas.
Williams owns 84 percent of Williams Partners, including the general-partner interest. Most of Williams' interstate gas pipeline and midstream assets are held through its ownership interest in Williams Partners.
The Transco pipeline is a 10,000-mile pipeline system which transports natural gas to markets throughout the northeastern and southeastern United States. The current system capacity is approximately 8.6 billion cubic feet per day.
Florida Gas Transmission Co., a subsidiary of Citrus Corp., operates a 5,000-mile natural gas pipeline system extending from south Texas to south Florida with mainline capacity of 2.1 billion cubic feet per day. Citrus Corp is 50 percent owned by Southern Union Co. and 50 percent owned by El Paso Corp.