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Tennessee's NED Loses Two Legs as Laterals Dropped

Tennessee Gas Pipeline Co. LLC (TGP) has downsized its Northeast Energy Direct (NED) Project to serve New England, striking from the project two pipeline laterals as well as previously planned modifications at three meter stations.

"This revised scope, which will be reflected in Tennessee's next draft environmental report filing, will allow Tennessee to meet the needs for all the shippers that have executed binding precedent agreements for the project," the Kinder Morgan Inc. (KMI) pipeline told FERC in a filing [PF14-22].

NED was announced last year with a planned capacity scalable from about 800,000 Dth/d to 1.2 Bcf/d, or ultimately up to 2.2 Bcf/d, depending upon final customer commitments (see Daily GPI, July 30, 2014). Capacity is to be made available via a combination of new pipeline, existing pipeline, additional pipeline looping, new compressor stations, station modifications and metering and measurement equipment in Pennsylvania, New York, Massachusetts, Connecticut, New Hampshire and Rhode Island.

On Tuesday, TGP told the Federal Energy Regulatory Commission that the facilities to be removed from NED include 15.6 miles of pipeline associated with the North Worcester Lateral in Massachusetts and the Stamford Loop in Connecticut; the proposed new North Worcester meter station in Massachusetts; and proposed modifications at three existing meter stations in Connecticut (Long Ridge Meter Station, Stamford Meter Station and New Britain Meter Station).

"This revision to the project scope represents the result of Tennessee's complete engagement in the Commission's pre-filing process, which is meant to provide a forum to refine a potential project prior to the filing of a formal certificate application with the Commission," TGP said in its filing. "The removal of the impacts associated with the two pipeline laterals, a new meter station, and meter station modifications from the scope of the project will be reflected in the upcoming submittal of the second draft of the Environmental Report to the Commission, now targeted for July 2015...Tennessee intends to file the certificate application for the Project in October 2015."

When asked, KMI spokesman Richard Wheatley would not say whether the scrapping of the lateral plans was due to a lack of customer commitment for the capacity. However, a Boston Globe report quoted KMI's Allen Fore, vice president of government affairs, as saying, "We just don't have the customers," but remain committed to the larger project.

The company told FERC that "refinements to the proposed project route will occur as the project continues to be developed during this pre-filing process and the anticipated certificate application process, which will incorporate information gained from field surveys and landowner and other stakeholder input."

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