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Tennessee, CNG Team to Serve East

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. 1, 2001.

"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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