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Florida Gas Transmission Company - Lehman Brothers Collection

Florida Gas Transmission Company

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When the original Florida Gas Transmission system was founded and put into service in 1959, it wasn't named Florida Gas Transmission. It also wasn't one system, but was actually two pipeline systems. The western portion that ran from south Texas to Baton Rouge was named the Coastal Transmission Corporation. From Baton Rouge to the terminus in south Florida, the company was called the Houston Gas and Oil Corporation. Together, the two systems included 2,712 miles of pipeline with a capacity to deliver 275 million cubic feet per day (MMCF/d) into Florida. Incorporated in 1954, the Houston Texas Gas and Oil Corporation was a wholly owned subsidiary of Florida Gas Company. The subsidiary and parent companies were located in Winter Park, Florida.

Florida Gas Transmission Company provides natural gas transportation services to customers in peninsular Florida. The company purchases, transmits, and sells natural gas, in addition to providing transportation of natural gas. Transmission's original pipeline system was completed in 1959 at a cost of approximately $172 million. Additional power was installed in stages in 1962 and 1968, and in 1970 Transmission completed its third stage. The gross investment in the transmission system as of 1970 was in the neighborhood of $364 million. Customers of the company include electric utilities, independent power producers, cogeneration facilities, municipal generators, and local distribution companies. Despite the fact that Florida Gas Transmission's largest customer base has always been the power-generation market, the diversified customer base has been a key to the success by allowing the pipeline to be have a high utilization rate year-round, thereby keeping rates low. The pipeline is one of only a few that provide long-term seasonal contracts and may be the only pipeline with seasonal contracts that are contracted to almost-full capacity on a year-round basis.

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