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Algonquin Files Application to Construct 16-Mile Pipe to Proposed Excelerate LNG Port

Algonquin Gas Transmission LLC last week filed an application with FERC to construct, own and operate a 16-mile pipeline that would connect Algonquin's New England-area natural gas pipeline system to Excelerate Energy's proposed Northeast Gateway deepwater liquefied natural gas (LNG) port. A mid-2007 in-service date is anticipated.

Excelerate, which is finalizing plan to build its second LNG facility offshore Massachusetts, already operates an offshore LNG facility in the Gulf of Mexico.

The Duke Energy Gas Transmission (DEGT) 24-inch pipeline would connect its existing pipe in Massachusetts Bay to the proposed LNG facility, which would be located 13 miles off the coast. The pipeline would have the takeaway capacity to transport 800,000 Dth/d of regasified natural gas from the LNG port.

"DEGT's geographic position and coastal access are ideal for bringing needed natural gas infrastructure to the region and natural gas supply to New England customers," said DEGT Group Vice President Greg Rizzo. "The Northeast Gateway project will further enhance the reliability and flexibility of the northeastern pipeline grid and advance Algonquin's development as a regional natural gas header system."

Rizzo added, "This is a great opportunity both to connect a new supply source in close proximity to the market and increase the supply and delivery options available to our customers."

The application by Algonquin to the Federal Energy Regulatory Commission follows a move by Massachusetts officials last month, who filed a motion with FERC to request a new, comprehensive evidentiary hearing to review all of the proposed and planned northeastern LNG import terminals and to identify those that would best serve the public interest (see NGI, May 16).

Algonquin said it executed a binding precedent agreement with Excelerate in February which sets forth the commercial terms under which Algonquin would provide firm transportation service to Excelerate on the Northeast Gateway project, subject to certain conditions. The companies currently are pursuing applications for the necessary state and federal permits to construct the pipeline and port.

Duke said the companies also have been actively working with area stakeholders for many months to prepare for the permitting process. It said that the community outreach will continue throughout the construction and operation of the project.

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