Tetco Proposes Independence Project Substitute
The battle over who will get to build new pipeline capacity to
the prized Northeast gas market has reached a feverish pitch, with
sponsors dreaming up ways to knock out their competitors' projects.
ANR Pipeline and National Fuel Gas Supply Corp., sponsors of the
proposed Independence Pipeline, recently proposed a plan that could
wipe out a large part of Columbia Gas Transmission's Millennium
Pipeline project. And Texas Eastern Transmission (Tetco) has joined
the ranks, devising a proposal that could obviate the need for
Independence altogether and part of an associated project.
Tetco claims it has enough existing and projected turned-back
capacity on its system so that, when combined with "certain
additional construction," would satisfy the customer needs of
Independence and a portion of the MarketLink project. It offered
the proposal earlier this month, saying it was overlooked by FERC
staff as a possible alternative to Independence in the draft
environmental impact statement (DEIS) on the pipeline project.
Tetco was evaluated as a possible substitute for the MarketLink
project in the DEIS, the pipeline said, but the availability of its
turned-back capacity was not factored into the equation. The
Commission staff subsequently asked Tetco to provide it with
"supplemental comments" on the alternative, which it did this week.
Tetco said it could satisfy market demand of 663,000 Dth/d from
an interconnection with ANR Pipeline at Muncie, IN, to Linden, NJ -
a demand level that is "commensurate" with the existing
subscriptions for MarketLink (663,000 Dth/d) and 34,000 Dth/d more
than the current subscribed level for Independence (629,000 Dth/d).
It contends it can do this by using existing and projected
turned-back capacity, combined with construction of about 75 miles
of pipeline looping, a replacement line and some additional
All told, Tetco said its alternative would entail 193 miles of
pipeline and 43,900 horsepower of compression at a cost of $194
million. This compares to 624 miles of new pipeline and 137,400
horsepower of compression for the $678 million Independence
project, which when combined with ANR's associated SupplyLink line
would extend from Joliet, IL, to the hub near Leidy, PA.
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