Spectra, NextEra to team up on $3B gas pipeline
- July 26, 2013 - 5:05 PM
JUNO BEACH, Fla. — A joint venture of Spectra Energy Corp. and NextEra Energy Inc. will spend $3 billion to build a 465-mile pipeline that will bring natural gas from Alabama to Georgia and Florida.
The companies said Friday that they are building the Sabal Trail project for Florida Power & Light Co., a subsidiary of electricity supplier NextEra. Spectra operates natural gas pipelines.
The new pipeline will end in Orlando, Fla., connecting there with two existing pipelines.
Florida Southeast Connection, also a subsidiary of NextEra, will separately invest roughly $550 million to build a separate pipeline connecting the Sabal line with FPL facilities in Indiantown, Fla.
Construction is expected to start in 2016. The pipeline is expected to become operational in May 2017, and should eventually be able to ferry more than 1 billion cubic feet of natural gas per day, said FPL.
FPL is Florida's largest electric utility and natural gas user, with roughly 4.6 million customer accounts. As such, it will be the main customer for the pipelines, the company said.
Shares of Spectra, which is based in Houston, closed up 39 cents at $36.75 Friday.
NextEra's shares slipped 29 cents to $83.66 in after-hours trading. The Juno Beach, Fla., company ended regular trading down 13 cents at $83.95.
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