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NextEra wants to reorganize Fla. gas pipeline system

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NextEra wants to reorganize Fla. gas pipeline system

Florida Southeast Connection LLC is looking to expand its portion of the Southeast Market Pipelines project by buying a natural gas lateral and related facilities from an affiliate.

The NextEra Energy Inc. subsidiary on March 9 filed an abbreviated application for authorization from the Federal Energy Regulatory Commission. Florida Southeast Connection would buy the Riviera lateral and related facilities from NextEra affiliate Florida Power & Light Co. Florida Southeast Connection asked the commission to authorize the acquisition by July 1, which would allow the transaction to close Sept. 1.

Florida Southeast Connection would buy the lateral and related facilities for about $1.67 million, although the price could change if the acquisition is not closed by Sept. 1.

The Riviera lateral runs 38 miles through parts of Martin and Palm Beach counties in Florida, from Florida Power & Light's Martin power plant to its Riviera Beach Next Generation Clean Energy Center. The Riviera Beach plant started service April 1, 2014. The 24-inch-diameter lateral has an interconnection with Florida Gas Transmission Co. LLC and a receipt point with Florida Southeast Connection at the Martin plant. The proposed acquisition would not require additional construction.

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Florida Southeast Connection said in the application that the acquisition "will improve the interconnectivity of the pipeline grid in South Florida as a result of the facilities becoming open access."

Florida Southeast Connection entered into a precedent agreement with Florida Power & Light for 300,000 Dth/d of gas transportation service that would begin Sept. 1. The line's remaining capacity of 84,000 Dth/d would be available on an open access basis.

Florida Southeast Connection's mainline project, 126 miles of 36-inch-diameter and 30-inch-diameter pipe, is in service and moves gas to Florida Power & Light and other customers. As part of the Southeast Market Pipelines project, the mainline project gave the Florida power market additional access to gas supply in the Marcellus and Utica shales. FERC's original certificates for the Southeast Market Pipelines were vacated by the U.S. Appeals Court for the D.C. Circuit in 2017, but on March 7, the court gave the commission more time to issue new permits for the projects. (FERC dockets CP18-108, CP15-17, et al.)