Florida Power & Light Company (FPL) is partnering with PetroQuest Energy Inc. on a new venture to develop up to 38 natural gas production wells in the Woodford shale play in southeastern Oklahoma. PetroQuest, an independent oil and natural gas company and operator in the region, will oversee and operate those wells. FPL will receive a portion of the natural gas produced from each well for its use.
By investing in natural gas production at the source rather than paying full market prices, FPL is projecting customer savings of up to $107 million over the life of the first project. Investing in gas production at the source will enable FPL to secure gas at a relatively low and stable cost to customers for as long as the wells produce gas, which is typically about 30-plus years.
FPL has asked the Florida Public Service Commission (PSC) to approve guidelines for future natural gas production projects to allow the company, and, in turn, its customers, to take advantage of future beneficial natural gas investment opportunities.
"With a growing fleet of cleaner, fuel-efficient natural gas-fired power plants and contracts for reliable and diverse gas transportation in place, we believe this to be the next logical step in providing clean electricity for our customers at affordable prices," said Eric Silagy, FPL president and CEO. "This investment in natural gas production is an important component for delivering lower, more stable natural gas prices for our customers, and we anticipate identifying additional investment opportunities, thereby benefiting our customers even more over the long term. Importantly, customers will realize the greatest amount of savings in the early years when wells typically produce the most natural gas."