More than two months after receiving a favorable environmental review, FERC last Thursday gave the go-ahead for Iroquois Gas Transmission System LP's proposed system expansion that would provide increased natural gas supplies to Long Island and New York City.
Iroquois plans to loop its existing pipeline system in Newtown, CT, by Nov. 1 (Phase 1); construct two 10,300 hp compressor units at a new compressor station in Milford, CT, by Jan. 1, 2009 (Phase 2); and add a 10,300 hp compressor unit to Iroquois' Brookfield Compressor Station in Brookfield, CT, by Nov. 1, 2009 (Phase 3).
The proposed expansion, which would have an estimated price-tag of $118.4 million, would enable Iroquois to deliver up to 200,000 Dth/d of natural gas to KeySpan Gas East Corp. at South Commack, Long Island [CP07-457].
With these facilities, Iroquois would act as a middleman between Algonquin Gas Transmission LLC and KeySpan. Algonquin has entered into a precedent agreement with KeySpan to deliver 175,000 Dth/d of firm natural gas service effective Nov. 1 and an additional 25,000 Dth/d commencing Nov. 1, 2009. The volumes would be delivered by Algonquin to Iroquois at Brookfield for subsequent delivery by Iroquois to KeySpan to serve the New York City and Long Island markets, Iroquois said.
Because the pressure in the Iroquois mainline is substantially higher than the pressure in the Algonquin pipeline at Brookfield, Iroquois currently is only able to deliver gas into, but not receive gas from, the Algonquin system. The proposed expansion would allow Iroquois to receive gas from Algonquin.
The Federal Energy Regulatory Commission (FERC) also granted Iroquois' request for a predetermination to roll the costs of the project into its existing Eastchester Expansion Project in its first Section 4 rate proceeding.
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