US FERC approves gas pipeline lateral in Florida

  • : Natural gas
  • 18/06/04

The US Federal Energy Regulatory Commission (FERC) has approved a proposed natural gas lateral off of the Florida Southeast Connection (FSC) pipeline to supply a gas-fired power plant in Florida, despite one commissioner's dissent.

FERC on 30 May approved NextEra Energy's 386mn cf/d (11mn m³/d) Okeechobee lateral project, which would connect the company's FSC line to the new 1,600MW gas-fired Okeechobee Clean Energy Center power plant in Okeechobee County, Florida. The power plant is expected to be in service by mid-2019.

The project's approval garnered statements from the commission's two democratic members on the lateral's potential for contributing to downstream greenhouse gas emissions (GHG). The commission began considering downstream GHGs following a major court decision last year that ordered FERC to undertake such an analysis of the 1.1 Bcf/d Sabal Trail pipeline in Florida. But FERC's three-member Republican majority last month said the commission would end the practice because of imprecise emissions projections.

Democratic FERC commissioner Cheryl LaFleur released a statement explaining why she concurs with the commission's approval of the Okeechobee project, despite her continued disagreement on the commission's determination that it is unable to discern the significance of downstream GHG.

LaFleur said she found that the project is in the public interest only "after carefully balancing the need for the project and its environmental impacts."

Democratic FERC commissioner Richard Glick dissented from the decision to approve the project, saying the commission cannot conclude that the project is in the public interest without first determining its contribution to climate change.

The commission did not make any effort "to determine the significance of the 5.46mn tons of greenhouse gas emissions potentially caused by the project," Glick said. "The commission must actually assess the harm that the project will cause as a result of its contribution to climate change."

The lateral project includes constructing 5.2 miles (8km) of 20-inch pipeline off of the FSC to reach the new plant, operated by Florida Power & Light (FPL).

FPL has contracted for 386mn cf/d of capacity on the FSC pipeline beginning on the in-service date, which would increase to 580mn cf/d in May 2020, according to FERC filings.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more