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2000 News Releases
Date: June 14, 2000
New
Study Shows Gulfstream Natural Gas System Would
Add $1.2 Billion to Florida Economy;
Includes Plans to Purchase Steel Pipe From Florida Supplier
HOUSTON – The Coastal
Corporation today announced that its Gulfstream Natural Gas
System, L.L.C., affiliate would bring $1.2 billion into the
Florida economy, according to an updated independent study
conducted by Fishkind & Associates of Orlando, Fla. The
study now includes the additional economic impact of
Gulfstream’s plans to purchase large diameter pipe from Berg
Steel Corporation of Panama City, Fla.
Gulfstream recently received a
preliminary determination of need from the Federal Energy
Regulatory Commission (FERC) on its application to build a
744-mile pipeline from Alabama to Florida’s East Coast.
An initial study conducted by
Fishkind & Associates was included in Gulfstream’s
application to the FERC last year. According to that study,
Gulfstream would generate an economic impact of at least $716
million to the state’s economy through the initial
construction costs and ongoing operations over a 20-year period
once the project is completed. More than half of the benefits
would be realized during the construction phase.
Since the original study was
completed and submitted to the FERC, decisions made by
Gulfstream would bring additional economic benefits to the state
of Florida. The most significant of these is Gulfstream’s
decision to purchase steel pipe from Berg. Gulfstream has signed
a letter of intent with Berg to provide the majority of the
36-inch and 30-inch diameter pipe for the project. This
anticipated purchase, along with the related events, brings the
total economic benefit to the state to more than $1.2 billion,
according to Fishkind & Associates’ recent update.
"This project offers a
win-win situation to the people of Florida," said David A.
Arledge, chairman, president and chief executive officer of The
Coastal Corporation. "Not only will the Gulfstream Natural
Gas System bring much-needed, reliable natural gas supplies into
the area, the state also will enjoy increased economic benefits
from both the initial construction and then the presence of the
pipeline for years to come through wages paid, property taxes
and materials acquired locally to operate the pipeline
system."
When completed, Gulfstream will
have the capacity to deliver 1.1 billion cubic feet of natural
gas per day to Florida to meet the increased need for
clean-burning natural gas for use by utilities and
power-generation facilities.
More information about the
Gulfstream Natural Gas System is available by calling
1-888-GAS-4-FLA (1-888-427-4352).
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