The United States Federal Energy Regulatory Commission approved Florida Gas Transmission’s East-West project enabling additional natural gas volume deliveries to LNG projects on Gulf coast.
Florida Gas proposes to construct and operate the East-West Project to provide transportation for 275,000 million British Thermal Units per day (MMBtu/d) of natural gas from two proposed receipt points and one existing receipt point in Louisiana to two proposed delivery points on Florida Gas’s existing pipeline system in the Gulf Coast region of Texas.
The company, which is a unit of Citrus, a company owned by Kinder Morgan and Energy Transfer, has already executed agreements with LNG players like the Hague-based Shell and Japan’s JERA, for firm transportation service of 175,000 mmBtu per day and 100,000 mmBtu per day, respectively.
The agreement with Shell is scheduled to start from April 1 2018 with a 10-year term, while the agreement with Jera has a 15-year term and is scheduled to start on September 1, 2018.
The project cost is estimated at $68.9 million, Florida Gas said in its filing with FERC.