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Industry News

FPL Selects Sabal Trail Transmission and Florida Southeast Connection for Pipeline Expansion into Florida

LCG, July 29, 2013--The Florida Power & Light Company (FPL) Friday announced that its evaluation of proposals for additional natural gas transportation capacity determined that the best alternative is a combination of pipelines and interconnection hub to be built by Sabal Trail Transmission, LLC, and a second natural gas pipeline to be built by Florida Southeast Connection, LLC. FPL's economic analysis concluded these projects will save FPL customers nearly $600 million relative to the next best proposal.

Sabal Trail Transmission is a joint venture of Spectra Energy Corp and NextEra Energy, Inc., and Florida Southeast Connection is a wholly owned subsidiary of NextEra Energy.

The proposed Sabal Trail pipeline will start in southwestern Alabama and transport gas to Georgia and Florida, where it will terminate at a new Central Florida Hub south of Orlando. At the hub, the pipeline will interconnect with the two, existing pipelines that serving Florida. The proposed 465-mile, interstate pipeline will generally parallel existing interstate and utility facilities and add over 1 Bcf/day of pipeline capacity to serve local gas distribution companies, industrial users and natural gas-fired power generators.

Another pipeline will be built to deliver the gas to FPL for power generation. The Florida Southeast Connection project will extend from the Central Florida Hub to FPL's Martin Clean Energy Center in Indiantown, Florida, and it will be constructed by Florida Southeast Connection. The 126-mile pipeline will initially be capable of transporting 400 MMcf/day or more to FPL's Martin Clean Energy Center.

Sabal Trail Transmission will invest approximately $3 billion in the construction of its new facilities, and Florida Southeast Connection will invest approximately $550 million for the extension to FPL's Martin Clean Energy Center.

Permitting activities are underway for both projects. The new pipeline system is targeted to start construction in 2016 and commence operations in May 2017. Both Sabal Trail and Florida Southeast Connection will be interstate natural gas pipelines subject to Federal Energy Regulatory Commission (FERC) approval and oversight.

FPL's President stated, "At FPL, we have worked hard to reduce our dependence on foreign oil and to keep our customers' bills low. Since 2001, our investments in cleaner, more efficient, natural gas power plants have saved our customers more than $6 billion on fuel costs. To continue meeting the growing needs of our customers efficiently and reliably in the years ahead, we will need more natural gas than the two existing major pipelines can deliver, which makes a third, independently routed pipeline system absolutely essential.... Natural gas is vital to the reliability and affordability of electricity in our state. Although Florida has essentially no natural gas reserves, many areas of our country have a wealth of supply. This project is not only about FPL and our customers ? increasing access to clean, efficient, U.S.-produced natural gas will benefit the entire state."

Both Sabal Trail and Florida Southeast Connection will be interstate natural gas pipelines subject to Federal Energy Regulatory Commission approval and oversight.
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