Norway's Norse Energy Corp. ASA said it has begun construction of an interconnection near Morrisville, NY, to accommodate natural gas deliveries into two Dominion Transmission parallel pipelines.

Dominion Transmission, a subsidiary of Dominion, provides gathering, processing, transportation and storage services in the Marcellus Shale production area. The Madison County, NY, site of the interconnection will also accommodate future interconnection to the Tennessee Gas Pipeline network, Norse said.

"This new pipeline interconnection brings us another step closer to the goal of connecting our 130,000 acres in central New York and 4 Tcf of contingent resources to three major interstate pipelines serving premium markets on the East Coast of the United States," said Norse CEO Mark Dice.

Norse said the tap would provide it with additional capacity to support an expected ramp up in production from the Herkimer sandstone in central New York. Norse has 30 Herkimer wells in Madison and Chenango counties and previously set a target production of 4,275 Boe/d from the Herkimer by the end of the year. An internal evaluation of the field indicated 0.5 Tcf of recoverable gas, according to Norse.

Additional pipeline investments would increase delivery capacity into the Dominion system to approximately 25,000 Mcf/d, Norse said. With future meter upgrades, the tap is expected to support full field development of gas from the Herkimer, Marcellus and Utica formations.

Norse bought the Project Penny gathering pipeline and compressor facilities in New York and Pennsylvania in 1999 (see Daily GPI, June 2, 1999).

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