Gas company gets approval for a $1.9 billion expansion in Florida to pump gas to homes
Florida regulators approved a $750 million expansion of a gas-storage facility in the Sunshine State to pump liquefied natural gas.
The expansion is part of a $8.7 billion expansion plan by the company, the American Energy Research & Technology Corporation.
The company is seeking a waiver from state regulators to build the facility, according to the Florida Department of Environmental Protection.
The Florida Department said in a statement that the project was approved to allow for a 1,000-megawatt gas storage facility, with a capacity to store up to 100 million cubic feet of natural gas a day.
The project will be built by Southern Company, a unit of EDF, a large energy company.
EDF and Southern were among the companies involved in a massive natural gas drilling boom in the region that began in the 1970s.
The boom was spurred by cheap natural gas, which was cheaper than coal.
But the boom didn’t last.
The price of natural-gas liquids rose to $6.40 per million BTUs in 2016, from $2.80 a decade earlier, and that increased to $11.40 in 2018, from the $7.60 per million Btu it was a decade ago.
The cost of natural Gas liquids has also risen, to $8 per million cubic meters in 2017, from around $3 a decade before.
The industry is trying to recover that cost.
“It is critical that gas is priced at the appropriate price,” said Doug Williams, a spokesman for EDF.
“The natural gas boom is still going strong, but at a very steep rate, with price volatility in natural gas.”
The company plans to expand to another site in the state’s southwest.
The natural gas storage system is part on an existing facility, but EDF is looking for more land, said John Kopp, a senior vice president at EDF who is leading the company’s efforts to secure the waiver.
EDA’s approval for the project comes just months after the state approved $1 billion in bonds to build a gas storage project in West Palm Beach.
The bond approval will allow the company to build up to 1,500 new storage tanks at a time.
The approval was part of the $8 billion natural gas expansion that Florida Gov.
Rick Scott approved on Monday.
Florida was the first state to approve a liquefaction liquefier in February, and the next phase will be for two new plants to be built at a site in Jacksonville and a facility in Lake Worth.