Islander Pipeline Project Filed at FERC

Islander East Pipeline Co. LLC., a joint venture of subsidiaries of Duke Energy and KeySpan Corp., filed an application with FERC to construct 50 miles of interstate gas pipeline that will transport gas to growing markets in Connecticut, New York City and Long Island, NY. First announced in late January (see NGI, Feb. 5), the 250 MMcf/d pipe is expected to be in service in 2003.

Through interconnections to many major supply basins in North America, including the recently developed reserves offshore eastern Canada, Islander East is expected to further supplement the gas supplies necessary to fuel new and existing gas-fired, electric generating plants as well as local distribution companies in the area.

"Increased access to newly developed reserves will provide a secure, reliable source of natural gas to the area," said Robert Evans, president of Duke Energy Gas Transmission (DEGT), the managing partner for Islander East. "Islander East will meet the stringent federal, state and local requirements for approval, and we will continue to work with landowners, public officials, community and environmental organizations and other interested parties throughout the FERC process."

KeySpan CEO Robert B. Catell said, "The environmental benefits of natural gas continue to stimulate growth in residential, business and industrial markets in the Northeast. This growth will continue as more people switch their homes and workplaces to natural gas and as new natural gas-powered electric generating plants come on line."

But Islander has a rival. Tennessee Gas Pipeline Co. announced a similar project in January (see NGI, Feb. 5). The El Paso business unit announced its Connecticut-Long Island project shortly after Islander and intends to serve roughly the same area. As if two competing projects were not enough, Iroquois Gas Transmission System LP announced in April an open season for Zone 2 firm transportation capacity for delivery on its proposed Eastern Long Island Expansion, which would also serve the same area (see NGI, April 9).

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