Belgian company Tractebel is set to award contracts for its $US550-600 million liquefied natural gas (LNG) project in the Bahamas by early 2004.

The US Federal Energy Regulatory Commission (FERC) has given preliminary approval to Tractebel for the 40-mile US section of a pipeline, linking Florida with the Bahamas.

The Calypso pipeline will supply 832mcf/d to a Florida market that is expected to require more than 9,600MW of additional generating capacity by 2007, or two billion cubic feet per day of natural gas.

The project includes an LNG receiving terminal on Grand Cayman Island in the Bahamas, marine facilities, and the 90-mile pipeline to Florida's southern coast, including a five-mile onshore segment. Construction of the LNG terminal will take 32-36 months with operations starting up in early 2007.

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