Planned to be commissioned in 2017, the Sabal Trail Transmission-owned 500 miles pipeline will traverse underground from Tallapoosa County, Alabama to Osceola County, Florida.
With thedeal, Spectra Energy owns a 59.5% ownership in the project, while NextEra Energy holds the remaining 33%.
Sabal Trail Transmission is a joint venture (JV)of Spectra Energy, NextEra Energy, and now Duke Energy.
The JV intends to secure regulatory approvals for the project by early 2016 with plans to commence construction later the same year.
The pipeline will transport 1.1 billion cubic feet of natural gas per day to the southeastern region.
Duke Energy plans to invest about $225m in the project in the next seven years with 90% of it planned to be spent by 2018.
Duke Energy commercial transmission vice-president Phil Grigsby said: "The Sabal Trail pipeline will benefit Duke Energy’s Florida customers by supplying a stable, reliable supply of low-cost natural gas to generate electricity.
"Duke Energy’s investment in the pipeline further expands the company’s commitment to build critical natural gas pipeline infrastructure in the Southeast US, where natural gas has become an important fuel that provides significant environmental benefits."
According to latest data from the US Energy Information Administration , Florida uses natural gas to meet 62% of its electricity needs.
