Iroquois Enters the Long Island Pipeline Race

Joining competition with Tennessee and Algonquin for growing markets on Long Island, Iroquois Gas Transmission System LP announced an open season yesterday for Zone 2 firm transportation capacity for delivery on its proposed Eastern Long Island Expansion.

Iroquois proposes to construct 20 miles of 24-inch diameter marine pipeline from Milford, CT, to Shoreham, LI, and points farther inland as the market demands. Its plans follow those of Duke Energy's Algonquin Gas Transmission and El Paso's Tennessee Gas Pipeline. Algonquin is planning a 250 MMcf/d project called Islander East. Tennessee Gas is planning a 450 MMcf/d expansion called the Connecticut Long Island Lateral (see NGI, Feb. 5).

"Our competitors propose access to Long Island and, via displacement, New York City,'' says Herb Rakebrand, vice president of marketing and transportation at Iroquois. "As with projects such as Eastchester, our expansion will be structured to meet the needs of our customers. We propose to design our Eastern Long Island Expansion on a rolled-in basis, offering shippers physical access to the New York Facilities System on Long Island at Shoreham and South Commack, and in New York City at South Bronx. Iroquois' shippers will have meaningful access to both KeySpan and ConEd markets --- all at one Zone 2-only rate."

Shippers on the proposed expansion will have direct access to Iroquois' entire Zone 2 marketplace, which includes the Bridgeport, Milford, Devon and Northport power stations, interconnects with Tennessee Pipeline's 200 and 300 lines, and Algonquin -- as well as LDCs in Connecticut and New York, and New York City markets via Iroquois' Eastchester Project, which is pending FERC certification.

"At Iroquois, one of our top priorities is offering diverse market access that maximizes the value of the transportation asset for our shippers," said Craig R. Frew, president of Iroquois. "Iroquois is ideally situated to meet this market growth as we already have expandable pipeline facilities less than 20 miles from Shoreham."

Iroquois said market analysts predict annual demand increases on Long Island of greater than 6% for residential natural gas. Long Island's demand for gas-fired generation will grow commensurate with its electric growth of nearly 100 MW per year. With a threshold volume of 160 MDt/d and as few as 20 miles of pipeline to be constructed, Iroquois said its Eastern Long Island proposal meets projected market need with minimal effect on the environment. It also would be expandable to 500 MDt/d.

For more information contact Robin Almond at (203) 925-7274. Information also has been posted on Iroquois' web site and on its electronic bulletin board, Iroquois OnLine. Responses are due by May 2. The minimum term of service is 10 years, with an initial in-service date of Nov. 1, 2003.

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