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What We Do
The mission of Floridian Natural Gas Storage LLC (FGS) is to offer Florida's power and gas companies a tool to provide added natural gas supply, enhance gas supply security, increase system reliability and improve 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 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 into 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.
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 Florida Steel Superfund site. This site is close to both of the existing gas pipelines.
Power and gas companies will deliver gas to the FGS facility through their existing pipeline capacity during off-peak periods. FGS will refrigerate the gas until it becomes a liquid and store the liquid in the tank at normal atmospheric pressure until it is needed. Then, on peak days or during unexpected outages like hurricanes, utility companies will call to have the process reversed and the gas delivered from FGS to their power plants, back through the pipeline grid. The tank can be filled and emptied multiple times each year, thus ensuring back-up natural gas supplies - stored in Florida for the use of Floridians.
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