JUNO BEACH, Fla. and HOUSTON -- FPL Group Resources LLC, a subsidiary of FPL Group, Inc. (NYSE: FPL), affiliates of Tractebel North America, Inc., a business unit of Tractebel Electricity & Gas International, one of the business divisions of SUEZ (NYSE: SZE), and subsidiaries of El Paso Corporation (NYSE: EP), today announced that they have agreed to combine development efforts and resources in order to bring a new supply of natural gas to South Florida. These efforts will help meet Florida’s growing demand for clean natural gas and will deliver a new reliable source of production that will provide added supply security.
Affiliates of FPL Group Resources and Tractebel North America, Inc. have executed definitive agreements to combine their development efforts. FPL Group Resources currently has an option with subsidiaries of El Paso Corporation to purchase 100 percent of the development rights of El Paso’s proposed liquefied natural gas (LNG) terminal at South Riding Point on Grand Bahama Island and 50 percent of the proposed Seafarer pipeline to Palm Beach County, Florida. An affiliate of FPL Group Resources has also signed a definitive Heads of Agreement with Ras Laffan Liquefied Natural Gas Company Limited (II) (“RasGas”) for 800,000 million British Thermal units per day of LNG from Qatar. A Tractebel North America, Inc. (“TNA”) subsidiary is currently developing the Calypso pipeline project, which proposes to transport natural gas via a pipeline to Broward County, Florida, from a planned LNG terminal in Freeport, Grand Bahama, being developed by another TNA affiliate.
Upon completion of a series of new agreements, all three parties will have the ability to come together to create the most efficient project. Under terms of the new agreements, FPL Group Resources, affiliates of Tractebel North America, Inc., and El Paso will be equity owners of both the Seafarer and Calypso pipeline projects, and ultimately plan to construct one of these pipelines from the Bahamas to Florida. FPL Group Resources and affiliates of Tractebel North America, Inc. will be equal owners of an LNG receiving terminal in the Bahamas and a marketing company based in Florida called Sailfish Natural Gas Company, Ltd. ("Sailfish").
“By combining the talents and resources of our three companies, we will be able to deliver a more efficient project to bring a new supply of natural gas to South Florida,” said Brad Williams, vice president, Gas Projects, for FPL Group Resources.
William P. Utt, president and CEO for Tractebel North America said, “TNA is excited to be expanding SUEZ’s trans-Atlantic LNG position through these agreements. Our enormous experience in the LNG, natural gas and electricity generation value chains will contribute to ensuring that the most efficient project is built to serve the Florida market and we look forward to moving ahead with the proposed terminal and pipeline projects in the coming months.”
“El Paso will bring over 75 years of expertise in pipeline development, construction and operations to these efforts,” said John W. Somerhalder II, president of El Paso’s Pipeline Group. “We look forward to working with the other owners to ensure safe and reliable delivery of natural gas to south Florida while continuing to provide superior customer service.”
FPL Group Resources and TNA said the new Sailfish marketing company plans to furnish a joint proposal in connection with the Florida Power & Light Company outstanding request for proposals for LNG supplies. The companies said their marketing company’s proposal will offer the potential customers greater flexibility and supply security. The Heads of Agreement with RasGas is subject to Sailfish successfully competing to provide regasified LNG to Florida Power & Light Company and other Florida customers and obtaining certain regulatory approvals.
The new combined pipeline enterprise plans to continue to aggressively pursue the Seafarer FERC certificate and all other permits and approvals associated with that project as well as the remaining permits and approvals related to the Calypso Pipeline, which already has received its FERC certificate and State of Florida and Broward County environmental approvals. The newly combined LNG terminal enterprise is working to permit two sites in the Bahamas. By combining efforts and evaluating and optimizing every option, the companies intend to be positioned to best serve the Florida marketplace.
FPL Group, with annual revenues of more than $9 billion, is nationally known as a high-quality, efficient, and customer-driven organization focused on energy-related products and services. With a growing presence in 26 states, it is widely recognized as one of the country's premier power companies. Its principal subsidiary, Florida Power & Light Company, serves more than 4.2 million customer accounts in Florida. FPL Energy, LLC, an FPL Group wholesale energy-generating subsidiary, is a leader in producing electricity from clean and renewable fuels. Additional information is available on the Internet at www.FPLGroup.com,www.FPL.com and www.FPLEnergy.com.
Based in Houston, Tractebel North America, Inc. (“TNA”) is a business unit of Tractebel Electricity & Gas International (“EGI”) and is responsible for managing EGI’s positions within the energy value chain in the US, Mexico, and Canada, including electricity generation and cogeneration, natural gas and LNG, asset-based trading and origination, and energy sales and related services.
TNA subsidiaries own and/or operate a total of 59 power, cogeneration, steam, and chilled-water facilities, including those in construction or development, representing a capacity of more than 5,717 MW of electricity generation, 12 million pounds per hour of steam, and 147,000 tons per hour of chilled water. TNA’s wholly owned subsidiary, Distrigas of Massachusetts LLC (“DOMAC”), owns and operates an LNG receiving terminal in Everett, Massachusetts. The DOMAC terminal commenced operations in 1971 and currently serves most of the gas utilities in New England and key power producers, meeting approximately 20% of New England’s annual gas demand.
In Mexico, TNA affiliates operate three natural gas distribution networks in Guadalajara, Querétaro and Tampico, and two cogeneration plants in Tampico and Monterrey. These companies serve more than 90,000 natural gas customers and produce 280 MW of power.For more information about SUEZ, Tractebel Electricity & Gas International, or Tractebel North America, visitwww.egi.tractebel.com. For more information about Calypso U.S. Pipeline LLC (formerly Tractebel Calypso Pipeline LLC) visitwww.tractebelcalypso.com.
El Paso Corporation provides natural gas and related energy products in a safe, efficient, dependable manner. The company owns North America’s largest natural gas pipeline system and one of North America’s largest independent natural gas producers. For more information, visit www.elpaso.com. For more information about the Seafarer pipeline project visit www.seafarer.us.
CAUTIONARY STATEMENTS AND RISK FACTORS THAT MAY AFFECT FUTURE RESULTS FOR FPL GROUP
In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (Reform Act), FPL Group, Inc. (FPL Group) and Florida Power & Light Company (FPL) are hereby filing cautionary statements identifying important factors that could cause FPL Group's or FPL's actual results to differ materially from those projected in forward-looking statements (as such term is defined in the Reform Act) made by or on behalf of FPL Group and FPL in this press release, in response to questions or otherwise. Any statements that express, or involve discussions as to expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as will likely result, are expected to, will continue, is anticipated, believe, could, estimated, may, plan, potential, projection, target, outlook) are not statements of historical facts and may be forward-looking. Forward-looking statements involve estimates, assumptions and uncertainties. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following important factors (in addition to any assumptions and other factors referred to specifically in connection with such forward-looking statements) that could cause FPL Group's or FPL's actual results to differ materially from those contained in forward-looking statements made by or on behalf of FPL Group and FPL. Any forward-looking statement speaks only as of the date on which such statement is made, and FPL Group and FPL undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.
The following are some important factors that could have a significant impact on FPL Group's and FPL's operations and financial results, and could cause FPL Group's and FPL's actual results or outcomes to differ materially from those discussed in the forward-looking statements:
CAUTIONARY STATEMENTS AND RISK FACTORS THAT MAY AFFECT FUTURE RESULTS FOR EL PASO CORPORATION
This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, including, without limitation, our ability to successfully construct and operate the proposed pipeline facilities described in this release; general economic conditions in geographic regions or markets served by El Paso Corporation and its affiliates, or where operations of the company and its affiliates are located; the uncertainties associated with governmental regulation; competition, and other factors described in the company's (and its affiliates') Securities and Exchange Commission filings. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. Reference must be made to those filings for additional important factors that may affect actual results. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by The company, whether as a result of new information, future events, or otherwise.
CAUTIONARY STATEMENTS AND RISK FACTORS THAT MAY AFFECT FUTURE RESULTS FOR THE SUEZ GROUP
This press release contains certain forward-looking statements, particularly with respect to future events, trends, plans or objectives. These statements are based on management's current views and assumptions and involve a number of risks and uncertainties which may lead to a significant difference between actual results and those suggested either explicitly or implicitly in these statements (or suggested by past results). Additional information about these risks and uncertainties appears in documents filed by SUEZ with the U.S. Securities and Exchange Commission and the Autorité des Marchés Financiers (French securities regulator). The present forward-looking statements are made as of the date of the present release, with no undertaking by SUEZ to update or revise them, whether in connection with new information, future events, or any other factor.