Tennessee, CNG Team to Serve East
El Paso Energy's Tennessee Gas Pipeline and Consolidated Natural
Gas' CNG Transmission jointly unveiled the Atlantic Alliance
Project on Monday. If successful, this project will transport up to
750,000 Dth/d from Chicago market center and the Niagara Import
Point into eastern markets.
Atlantic Alliance will combine existing facilities and
rights-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.
"With the Atlantic Alliance, Tennessee and CNG are able to
capture operational efficiencies between their systems to offer a
competitive service that can be phased in as the market evolves,"
said Tennessee President John Somerhalder. With the uncertainties
that exist in today's market, the Atlantic Alliance represents a
rational 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 Transco
and the proposed MarketLink Project at Leidy, PA, and to Columbia
and the proposed Millennium Project at Horseheads or Greenwood, NY.
The Atlantic Alliance rate from Chicago to western New York or
Pennsylvania will be about 47 cents/Dth. Because it will use
existing facilities, Atlantic Alliance will be able to offer
service quickly, with 100,000 Dth/d available this winter.
"We find the emerging power generation market to be an exciting
opportunity for CNG and Tennessee," said Ron Adams, CNG senior vice
president in charge of regulated business. "Together, we can offer
this market highly competitive services timed to meet its needs
while remaining sensitive to environmental and landowner issues."
An open season is planned for August, with additional details
available later this month.
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