FERC Friday issued a certificate for Texas Eastern Transmission LP's (Tetco) proposal to install new natural gas pipeline and compression facilities in Ohio and Pennsylvania, and abandon and replace existing pipeline facilities in the two states to provide up to 150,000 Dth/d of new transportation service to the New Jersey market area.

The Texas Eastern Incremental Market Expansion II Project (TIME II) calls for the pipeline to abandon by removal approximately 28 miles of pipeline loop along Tetco's existing system in Pennsylvania and Ohio. As replacement, Tetco proposes to construct this year 6.44 miles of 36-inch diameter pipe in Somerset and Bedford counties, PA; 4.85 miles of 36-inch pipeline replacement in Franklin County, PA; 10.35 miles of 36-inch diameter pipeline replacement in Bucks County, PA; and a new 16,000 horsepower (hp) electric compression unit and compressor station in Heidlersburg, PA [CP06-115].

In 2008, Tetco plans to construct 6.25 miles of 36-inch diameter pipeline replacement in Pickaway County, OH; 4.02 miles of 36-inch diameter looping pipeline in Monroe County, OH; and a new 16,000-hp electric compression unit at the existing compressor station in Uniontown, PA.

As a result of a 2004 open season, Tetco, a subsidiary of Spectra Energy Corp., said it has entered into precedent agreements for firm transportation service with NJR Energy Services Co. for up to 150,000 Dth/d for a one-year term beginning November 2007; New Jersey Natural Gas for up to 100,000 Dth/d for a 15-year term beginning November 2008; and PSEG Power LLC for up to 50,000 Dth/d for a 10-year term commencing November 2008.

The certificate issued by the Federal Energy Regulatory Commission gives Tetco two years to complete and put the project in service. The pipeline estimates the project will cost approximately $170 million.

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