Connecticut Energy Corp. said subsidiary CNE Energy ServicesGroup signed a letter of intent with Conectiv to join a liquefiednatural gas (LNG) storage joint venture. This new business, to benamed Total Peaking Services (TPS), will use an existing 1.2 BcfLNG storage facility in Milford, CT. The venture has received FERCauthorization to provide open access storage; but is awaitingtariff approval, expected later this spring.

The LNG storage and liquefaction facility has access to threemajor gas pipelines in New England – Algonquin Gas Transmission,Iroquois Gas Transmission, and Tennessee Gas Pipeline – and it canalso be accessed by potential customers through three otherpipelines – National Fuel Gas Supply, Texas Eastern Transmission,and Transcontinental Gas Pipeline. It can receive gas in bothliquid or vapor form for winter storage.

Output capacity is 72 MMcf/d, and liquefaction capacity is 5MMcf/d. The facility was unbundled from Southern Connecticut Gas,and Southern will be under contract for a portion of its capacity.The rest is expected to be taken initially by LDCs with more andmore taken by marketers as retail unbundling unfolds, said Larry S.McGaughy, president of CNE Energy Services. Capacity can beexpanded.

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