The July 3 authorization for Phase I of the Sabal Trail Pipeline to begin full operation is another step toward meeting Florida’s growing demand for natural gas to fuel its electrical power grid.
As reported by the U.S. Energy Information Administration, Florida has led all U.S. states in expansion of gas-fired electricity capacity since the start of 2016 with the addition of 3.4 gigawatts. But the state, which has also retired older coal- and oil-fired plants, is not located near a major source of natural gas production, nor does its geology allow underground natural gas storage.
Read: Hillabee Natural Gas Expansion Project Goes Into Service In Southeast
The 515-mile Sabal Trail line, a joint venture of Spectra Energy Partners, NextEra Energy Inc. (NYSE: NEE) and Duke Energy Corp. (NYSE: DUK), will move up to 810 million cubic feet per day (MMcf/d) from an interconnection with the Transco Pipeline in Alabama to the Central Florida Hub in Osceola County, Fla. The pipeline began partial service on June 14 and will increase its capacity to 1.05 billion cubic feet per day when Phase III is completed, which is scheduled for 2021.
Two other projects are in the works to meet the additional 3.9 gigawatts of natural gas-fired capacity planned to come online in Florida over the next six years.
Two other projects associated with the Southeast Market Pipelines are:
- Transco’s Hillabee Expansion Project: Phase I added 800 MMcf/d of capacity to the Transco line in Alabama to provide natural gas to Sabal Trail. Phases II and III will add 200 MMcf/d of capacity in 2020 and 100 MMcf/d in 2021; and
- NextEra’s Florida Southeast Connection: This line receives natural gas from Sabal Trail at the new Central Florida Hub, where Sabal Trail also connects with other major pipelines in central Florida to increase regional natural gas deliverability. Florida Southeast Connection can transport 640 MMcf/d of natural gas to Indiantown in southern Florida.
The Southeast Market Pipelines are the third major network to deliver natural gas to the region. Florida Gas Transmission, which went into service in 1959, has experienced numerous expansions as the state has grown. The Gulfstream Natural Gas System came into service in 2002. Sabal Trail connects with both of these pipeline systems.
Recommended Reading
Chord, Enerplus’ $4B Deal Clears Antitrust Hurdle Amid FTC Scrutiny
2024-04-08 - Chord Energy and Enerplus Corp.’s $4 billion deal is moving forward as deals by Chesapeake, Exxon Mobil and Chevron experience delays from the Federal Trade Commission’s requests for more information.
Riley Permian to Acquire New Mexico Acreage, Launches Stock Offering
2024-04-04 - E&P Riley Exploration Permian will offer 2.1 million shares to help pay for the purchase of 12,500 net acres in Eddy County, New Mexico.
Oilfield Service Companies Dril-Quip, Innovex to Merge
2024-03-18 - Dril-Quip Inc. and Innovex Downhole Solutions Inc. will emerge as a new company, Innovex International, with expanded reach in global markets.
Apollo to Buy, Take Private U.S. Silica in $1.85B Deal
2024-04-26 - Apollo will purchase U.S. Silica Holdings at a time when service companies are responding to rampant E&P consolidation by conducting their own M&A.
Matador Hoards Dry Powder for Potential M&A, Adds Delaware Acreage
2024-04-24 - Delaware-focused E&P Matador Resources is growing oil production, expanding midstream capacity, keeping debt low and hunting for M&A opportunities.