|
|
|
Overview
Floridian Natural Gas Storage Company LLC (FGS) is a new company providing Florida's power and gas companies with a tool to enhance gas supply security, improve system reliability and develop price stability.
Demand for natural gas is rapidly increasing, in Florida and throughout the country. In 2004, approximately 30% of Florida's electricity was generated through the use of natural gas. The Florida Public Service Commission anticipates that over 44% of the state's electricity will be powered by natural gas in 2014. However, Florida's only current source of natural gas comes from two existing underground pipelines which bring gas from Gulf Coast states to Florida. The capacity from these two pipelines is fully subscribed and will be fully utilized during peak periods by 2011.
Because of the growth in demand, gas supply reliability is also a very important consideration for Florida. During the 2004-2005 and 2005-2006 hurricane seasons, interruptions to gas production seriously threatened supply coming to Florida.
Natural gas prices have become increasingly volatile in recent years. Short-term supply interruptions due to weather or other impacts and seasonal increases in demand due to summer cooling/winter heating needs across the country can cause prices to spike.
All of Florida's natural gas is imported from other states via underground pipelines. Florida's geology is unsuitable for in-ground gas storage, so the state has previously had to look to neighboring states for their storage needs. However, the major population centers in central and south Florida are far removed from these resources.
Without question, Florida needs the capability to store natural gas. Floridian Natural Gas Storage will build an above-ground gas storage tank in an industrial area of Indiantown (Martin County) at the 145-acre Florida Steel Superfund site. This site is close to both of the existing gas pipelines.
Power and gas companies that subscribe to the FGS storage service will deliver natural gas to the facility during off-peak periods where it will be refrigerated and stored in a specially designed tank at normal atmospheric pressure. When those companies need the gas, such as during peak summer days or during service interruptions, the process will be reversed and the gas will be returned to them through the pipeline grid. Power and gas companies can also use gas stored at off-peak prices to avoid price spikes when winter storms in the north cause all natural gas prices to rise.
Natural gas storage is a well-proven technology that is safe. Liquified natural gas cannot burn or explode. The gas storage tank design features multiple safety measures. In the unlikely event that any gas would escape, methane is lighter than air and would quickly dissipate without any accumulation at ground level. There has not been a liquified natural gas accident in this country for over 60 years, other than a very few workplace accidents of the type that can happen in any industrial setting.
There are over 100 similar natural gas storage facilities located throughout the country. The FGS project will require the approvals of the Federal Energy Regulatory Commission (FERC), State of Florida authorities such as the Department of Environmental Protection (DEP) and the South Florida Water Management District (SFWMD), as well as local Martin County agencies.
After the 4-year permitting and construction phase, the FGS facility is expected to open in 2011. During the construction phase, approximately 350 workers will be employed. After completion, the facility will run with a staff of approximately 30 people. The use of the Florida Steel Superfund site puts an idle, restricted-use property back on the tax rolls. Once the project is fully operational, it is expected to pay over $1.5 million annually in taxes without any burden on Martin County or Indiantown's infrastructure. The facility will have its own gas leak detection and fire suppression equipment and emergency shut-down systems. The capital invested to build the Floridian Natural Gas Storage facility is estimated to be over $500 million.
|
| Home | Top | Contact Us |
| © 2008 Floridian Natural Gas Storage, LLC. All rights reserved. |
|
