NextEra and Spectra Team Up for $3 Billion Natural Gas Project

NextEra Energy (NYSE: NEE  ) announced Friday that it's teaming up with Spectra Energy (NYSE: SE  ) to improve Florida's natural gas infrastructure. NextEra subsidiary Florida Power & Light had previously put out a request for proposals to improve its offerings, and this project beat out the next closest idea by almost $600 million.

The joint venture will pour around $3 billion into the construction of Florida's third major pipeline, connecting Alabama to Georgia and Florida consumers. NextEra will also invest an additional $550 million by itself to connect one of its natural gas power plants to the central pipeline hub.

Florida Power & Light President Eric Silagy noted in a statement:

At FPL, we have worked hard to reduce our dependence on foreign oil and to keep our customers' bills low. Since 2001, our investments in cleaner, more efficient, natural gas power plants have saved our customers more than $6 billion on fuel costs. To continue meeting the growing needs of our customers efficiently and reliably in the years ahead, we will need more natural gas than the two existing major pipelines can deliver, which makes a third, independently routed pipeline system absolutely essential.

In addition to using the pipeline itself, NextEra also notes that other corporations can contract pipeline capacity for their own purposes. Construction is expected to begin in 2016, with full operation expected in 2017.

Read/Post Comments (1) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 27, 2013, at 10:28 AM, jwsnyder13 wrote:

    If FPL has saved its consumers so much money, than why are we still ranked in the 20s in the country for cost of electricity?

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2562704, ~/Articles/ArticleHandler.aspx, 9/27/2016 10:13:28 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 57 minutes ago Sponsored by:
DOW 18,228.30 133.47 0.74%
S&P 500 2,159.93 13.83 0.64%
NASD 5,305.71 48.22 0.92%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 4:02 PM
NEE $126.79 Up +0.56 +0.44%
NextEra Energy CAPS Rating: ***
SE $41.54 Down -0.14 -0.34%
Spectra Energy CAPS Rating: *****