Tennessee Gas Pipeline Co. (TGP) on Wednesday executed binding, 15-year term agreements with Cabot Oil & Gas Corp., Anadarko Energy Services Co. and Seneca Resources Corp. to carry up to 250,000 Dth/d of incremental firm transportation capacity from the Marcellus Shale region to existing markets in New England and Niagara Falls, NY, via a revamped Northeast Supply Diversification Project (NSD Project).

"The NSD Project is TGP's third expansion in as many years out of the Appalachian/Marcellus supply basins," said TGP Chief Commercial Officer Bryan Neskora. "In addition to strengthening TGP's position as the premier pipeline in the Northeast, the NSD Project provides TGP's customers with additional diversity by increasing transportation capacity between growing Marcellus supplies and markets in New England and Niagara."

To accommodate shippers' requested transportation paths from Marcellus receipt points to markets in New England and at Niagara Falls, the NSD Project combines two TGP projects: the original NSD Project, which provided transportation to New England; and the Marcellus to Leidy and Niagara Project (MLN Project), which provided transportation service to Niagara Falls.

The El Paso Corp. subsidiary plans to expand capacity through a combination of pipeline looping, compressor station modifications and using existing capacity. Specifically the NSD Project would add about seven miles of 30-inch diameter pipeline along TGP's existing right-of-way, compressor modifications on the Niagara Spur, and the utilization of existing and off-system capacity.

The NSD Project is expected to cost less than $100 million, TGP said. It plans to file a certificate application with the Federal Energy Regulatory Commission later this year, and pending approval, construction could begin in the first half of 2012, with a Nov. 1, 2012 in-service date.

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