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Tuesday, October 03, 2006 5:13 PM ET
El Paso scraps plan for proposed pipeline to link Bahamian LNG to Florida


El Paso Corp. subsidiary Seafarer U.S. Pipeline System Inc. on Sept. 29 withdrew its application from FERC to build a 41-mile pipeline that would connect the company's proposed High Rock LNG terminal on Grand Bahama Island to Florida Gas Transmission Co.'s system in Palm Beach County, Fla. The company first filed its application for the project in November 2004.

"Because supplies of liquefied natural gas (LNG) have not been committed and conditions for developing LNG infrastructure in the Bahamas remain uncertain, Seafarer cannot now make the substantial commitment to perform site-specific geotechnical surveys required by letter order dated Sept. 21, 2006," James Johnston, the company's senior counsel, wrote to FERC. "Seafarer appreciates the time and effort that commission staff and the interagency team have devoted to this proceeding. We will keep the Office of Energy Projects informed of plans to re-apply when conditions improve."

FERC on Sept. 21 requested the company provide updated geotechnical data for use in compiling a draft environmental impact statement since the underwater pipeline would have to run through sensitive coral resources off the Florida coast.

The 800,000 Dth/d pipeline, as originally proposed, would run from an interconnection with Seafarer Bahamas Pipeline Systems in the Bahamas for about 35 miles before making landfall at Florida Power & Light Co.'s power plant in Riviera Beach, Fla. The U.S. line would have then traveled six miles onshore to a proposed interconnection with FGT.

The High Rock LNG facility, along with Seafarer Bahamas Pipeline Systems, was planned for South Riding Point on Grand Bahama Island. Supply was initially thought to be coming from Qatar.

Florida Power & Light is a subsidiary of FPL Group Inc. (CP05-25)

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