Spectra Energy Corp SE.N said its joint venture with NextEra Energy Inc (NEE.N) will construct a $3 billion gas pipeline to fuel the rising demand for power generation in Florida.
NextEra's Florida Power and Light (FPL) utility has selected the Sabal Trail Transmission JV to build the 465-mile pipeline, which could carry 1 billion cubic feet per day, from Alabama through Georgia to Florida.
The pipeline will provide gas for power generation starting in May 2017, FPL said.
NextEra said in January that Florida uses more gas for electricity than any U.S. state other than Texas, with about 60 percent of the state's power generated by plants that burn natural gas.
Unlike Texas, Florida has minimal gas production, no storage capabilities and only two major pipelines to deliver the fuel that powers the peninsula.
FPL's selection of these pipeline projects is subject to review by the Florida Public Service Commission and the Federal Energy Regulatory Commission, an FPL spokeswoman told Reuters.
(Reporting by Garima Goel in Bangalore and Eileen O'Grady in Houston; Editing by Don Sebastian)