The path of least resistance for Tennessee Gas Pipeline Co's (TGP) Northeast Energy Direct (NED) project includes adding more existing utility powerline corridor, the Kinder Morgan Inc. pipeline has decided after receiving input from landowners.
TGP is adopting two alternative routes for the project. They will reduce environmental impact and allow for the expansion of gas service in New Hampshire, the pipeline said Friday. TGP is submitting an amended resource report filing to FERC for the Wright, NY-to-Dracut, MA, project.
TGP plans to adopt both the New York Powerline Alternative and the New Hampshire Powerline Alternative, which will utilize existing utility corridors. The route change enables the company to avoid and substantially minimize crossing certain areas of critical environmental concern in Massachusetts.
"...TGP will be able to construct significantly more of the pipeline adjacent to and parallel with existing utility corridors in portions of New York, Massachusetts and New Hampshire, reduce the need for construction in undeveloped portions of the market path region and lessen environmental impacts. Additionally, we are working with Liberty Utilities and others to expand natural gas service into new areas in New Hampshire," said Kimberly Watson, TGP east region pipelines president.
In November, Liberty Utilities (Pipeline & Transmission) Corp., a unit of Algonquin Power & Utilities Corp. (APUC), and a subsidiary of Kinder Morgan agreed to form Northeast Expansion LLC to undertake development, construction and ownership of a 30- or 36-inch diameter gas pipeline to be located between Wright and Dracut. Under the agreement, APUC will initially subscribe for a 2.5% interest in the new entity, with an opportunity to increase its participation up to 10%.
The NED Project is being developed to serve New England with additional gas supplies to meet the growth needs of local distribution companies, enable New England to sustain its reliance on natural gas-fired generation and lower energy costs by providing access to Marcellus Shale gas.
With the adoption of the New York and New Hampshire powerline alternatives, the revised route will include: 188 miles of new and co-located mainline pipeline facilities, including about 53 miles of pipeline generally co-located with TGP's existing 200 Line and an existing power utility corridor in western New York near the proposed Market Path Mid Station No. 1; about 64 miles of pipeline generally co-located with an existing power utility corridor in eastern Massachusetts; and about 71 miles of pipeline generally co-located with an existing power utility corridor in southern New Hampshire.
NED was originally called Northeast Expansion and touted as offering up to 2.2 Bcf/d of capacity; an open season was held earlier this year (see Daily GPI, Feb. 14). TGP recently struck agreements with local distribution companies throughout New England to provide 500,000 Dth/d of long-term firm transportation on NED's market path (see Daily GPI, Sept. 18).