Markets in Atlantic Canada and New England won’t be getting anextra gas supply source as soon as previously expected. Maritimes& Northeast Pipeline LLC informed FERC this week that both530/360 MMcf/d Canadian/US pipeline project (Phase II) and theSable Offshore Energy Project (SOEP), which will be the source ofsupply for the pipeline, will not be in service on schedule.

Gas flow is not expected to be initiated from SOEP until as lateas Dec. 1 rather than on Nov. 1. “In addition, althoughconstruction of the Phase II facilities is nearing completion,Maritimes needs time to complete testing and other commissioningactivities,” the company said, adding that it expects service tobegin no later than Dec. 1.

A Maritimes’ spokesman said the main hold-up was a road boringproblem in Methuen, MA. He noted testing already has begun on theCanadian portion and the pipe, and the Canadian border south toWestbrook, ME is complete. He also said the producers aren’t quiteready, although they denied Nov. 1 ever was the deadline. A MobilCanada spokeswoman said the Sable Offshore Energy Project is onschedule to be in-service sometime in November, despite commentsmade by Maritimes. “Our plants are 98% complete,” she said. SOEPspokeswoman Cynthia Langlands said the producers expect gas flowinitially to be nearly 400 MMcf/d, ramping up to 550 MMcf/d. Shesaid more of the gas is expected to serve Northeastern U.S. marketsat first because Atlantic Canadian markets aren’t quite prepared toreceive gas.

Maritimes requested that the Nov. 1 FERC deadline for placingthe facilities in service be extended until the actual in-servicedate but no later than Dec. 1. It also requested that it bepermitted to continue the accounting treatment granted in the July31 order until it has placed the project in service. The U.S.portion of the pipeline is designed to carry 360 MMcf/d of SableIsland production (offshore Nova Scotia) to markets in New England.

Rocco Canonica

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