Companies are teaming up to improve midstream infrastructure at both sides of the country. For starters, Florida Power & Light Co. selected Sabal Trail Transmission LLC—a joint venture (JV) between Spectra Energy Corp. and NextEra Energy Inc.—and NextEra’s wholly owned subsidiary, Florida Southeast Connection LLC, to build two natural gas pipelines and an interconnection hub serving the Sunshine state and Georgia.
The $3 billion system will include a 465-mile interstate natural gas pipeline from Transco’s Station 85 in Choctaw County, Alabama, and a new central Florida hub south of Orlando where it will interconnect with two existing pipelines. The system will be capable of transporting more than 1 billion cubic feet (Bcf) per day of gas to serve local distribution companies, industrial users and gas-fired power generators.
Florida Southeast will invest approximately $550 million to construct a separate pipeline from the new hub to Florida Power’s Martin Clean Energy Center in Indiantown, Florida. Initial capacity will be 400 million cubic feet (MMcf) per day.
Permitting is under way for both projects with construction expected to begin in 2016 and service to start in 2017.
To the north, MarkWest Utica EMG LLC announced an infrastructure expansion to support Utica and Marcellus producers.
The JV between MarkWest Energy Partners LP and The Energy & Minerals Group signed a letter of intent with Kinder Morgan Energy Partners LP for a 400 MMcf per day cryogenic processing complex and natural gas liquids pipeline with an initial capacity of 200,000 barrels (bbl.) per day.
The JV will construct the processing complex on Kinder Morgan’s existing 220-acre site in Tuscarawas County, Ohio, which can accommodate 1 Bcf per day of processing capacity, MarkWest announced. Its MarkWest Utica unit would anchor the first of two 200 MMcf per-day plants, which is planned to be in service by fourth-quarter 2014. A second plant is expected to begin operation shortly thereafter.
The complex will be operated by MarkWest Utica, owned on a 50/50 basis and will provide customers with additional residue gas outlets to Tennessee Gas Pipeline Co. LLC and Dominion Transmission Inc. Kinder Morgan will operate the new pipeline, which would be expandable to 400,000 bbl. per day with the addition of new pump stations, and own at least 75% of it. A fourth-quarter 2015 in-service date is anticipated for the project pending sufficient shipper commitments, permitting and related regulatory approvals.
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