Algonquin Gas Transmission has asked FERC to approve a settlement that attempts to resolve a number of natural gas quality and interchangeability issues associated with the transportation of regasified liquefied natural gas (LNG) on its pipeline system.

The proposed settlement, which is the result of more than two years of negotiations among parties, is either supported or not opposed by the Northeast utilities, pipelines and LNG importers involved in the talks, Algonquin, a Spectra Energy pipeline, told the Federal Energy Regulatory Commission [RP07-504].

The proposed agreement makes a few "modifications and additions" to the pro forma tariff sheets that were approved and suspended by the Commission in July 2007, including:

The settlement further said Algonquin and parties will revisit issues related to the limit on sulfide content, the limit on hydrogen sulphide content, and the cricondentherm hydrocarbon dew point (CHDP) in concert with the gas quality proceedings of Algonquin affiliate Texas Eastern Transmission (Tetco).

Within 30 days of the effective date of FERC-approved gas quality revisions for Tetco, Algonquin said it will prepare and circulate draft tariff specifications on these issues for its system and will provide parties an opportunity to discuss the implications of Tetco's specifications on the Algonquin system. It noted that the "resolution of the gas quality specifications on the Texas Eastern system shall be relevant but not controlling with respect to Algonquin's specifications."

And 90 days after the effective date of the Commission-approved gas quality tariff revisions for Tetco, Algonquin said it will file proposed tariff specifications for sulfur content, hydrogen sulfide content and CHDP on its system.

Among the parties either supporting or not opposing the Algonquin gas quality settlement were Brooklyn Union Gas, KeySpan Gas East, Boston Gas Co., BP Energy, Bay State Gas, Connecticut Gas, Distrigas of Massachusetts, Consolidated Edison, Northeast Gateway Energy Bridge LLC, Shell NA LNG, Iroquois Gas Transmission, Maritimes & Northeast and Tetco.

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