El Paso Energy’s Tennessee Gas Pipeline and Consolidated NaturalGas’ CNG Transmission jointly unveiled the Atlantic AllianceProject on Monday. If successful, this project will transport up to750,000 Dth/d from Chicago market center and the Niagara ImportPoint into eastern markets.

Atlantic Alliance will combine existing facilities andrights-of-way with construction of incremental facilities.Construction will be phased to correspond to service requests.However, the full 750,000 Dth/d could be available as early as Nov.1, 2001.

“With the Atlantic Alliance, Tennessee and CNG are able tocapture operational efficiencies between their systems to offer acompetitive service that can be phased in as the market evolves,”said Tennessee President John Somerhalder. With the uncertaintiesthat exist in today’s market, the Atlantic Alliance represents arational way to address growth as it occurs.”

Atlantic Alliance will target developing markets in New York,Pennsylvania, and New England. It will include access to Transcoand the proposed MarketLink Project at Leidy, PA, and to Columbiaand the proposed Millennium Project at Horseheads or Greenwood, NY.The Atlantic Alliance rate from Chicago to western New York orPennsylvania will be about 47 cents/Dth. Because it will useexisting facilities, Atlantic Alliance will be able to offerservice quickly, with 100,000 Dth/d available this winter.

“We find the emerging power generation market to be an excitingopportunity for CNG and Tennessee,” said Ron Adams, CNG senior vicepresident in charge of regulated business. “Together, we can offerthis market highly competitive services timed to meet its needswhile remaining sensitive to environmental and landowner issues.”

An open season is planned for August, with additional detailsavailable later this month.

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