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Florida Gas proposes expansion to supply utility, manufacturer

Florida Gas Transmission Co. LLC asked FERC for authorization to expand its system to provide an extra 68,500 MMBtu/d of firm transportation service to Florida Public Utilities Co. and Ascend Performance Materials.

FERC provided notice of the request for authorization under the pipeline's blanket certificate Dec. 23. Florida Gas is a subsidiary of the holding company Citrus LLC, which is half owned by a Kinder Morgan Inc. affiliate and half owned by a subsidiary of Energy Transfer Partners LP.

The Western Division project would provide the additional transportation capacity from a receipt point in George County, Miss., through a Florida Gas compressor station to a proposed interconnection with Florida Public Utilities in Escambia County, Ala. The project would include mainline looping and other facilities in Santa Rosa County, Fla., and other equipment at the new interconnection in Alabama. The project is expected to cost about $10.7 million.

In October, Florida Gas and Florida Public Utilities entered into a precedent agreement, amended a month later, at a negotiated rate designed to cover the cost of service of the project. The agreement covers transportation service of 28,500 MMBtu/d, plus the right to increase that up to an additional 42,000 MMBtu/d for 25 years, with a scheduled in-service date of Oct. 1, 2017.

In November, Florida Gas and Ascend, a manufacturer and supplier of chemicals, fibers and plastic products, entered into a precedent agreement for Ascend to acquire up to 40,000 MMBtu/d of assigned capacity. The first part of that service would start in Oct. 1, 2017. (FERC docket CP17-23)