Distrigas of Massachusetts LLC (DOMAC), a major supplier of liquefied natural gas (LNG), has asked FERC for the go-ahead to build a send-out line to directly connect its facilities with a proposed Boston area lateral that Algonquin Gas Transmission is seeking to construct. Although small in scope, DOMAC contends the connection would represent a “new avenue for the delivery of regasified LNG to the New England gas market,” and would remove some of the physical take-away constraints on the Algonquin facilities that serve it.

Specifically, DOMAC is seeking a direct tie-in with Algonquin’s proposed Everett extension, a seven-mile lateral (four miles on land and three miles in Boston Harbor) that would run from Deer Island, MA, through three communities and terminate in Everett. The proposed extension would serve three shippers, including DOMAC.

Algonquin, a Duke Energy pipeline, filed a proposal at FERC in early February to add the planned Everett extension to its HubLine expansion project, which the Commission certificated in December 2001. FERC approved the HubLine expansion, which included a lateral to Deer Island, as a companion to the larger Maritimes and Northeast Pipeline III expansion. The integrated expansions, when completed, are expected to give the Boston area access to Atlantic Canadian gas supplies.

The proposed connection to the planned Everett extension would provide DOMAC an “alternative route” on the Algonquin system, the LNG supplier said. DOMAC currently delivers regasified LNG into the J-lateral system of Algonquin through a connection with KeySpan Energy Delivery New England.

In addition, the tie-in to the Everett lateral “will provide assured take-away capability during periods of high customer demand for natural gas” in New England, DOMAC said in its application [CP03-305]. “During the severe winter of 2002-2003, DOMAC had the ability to accelerate arrivals of LNG shipments in order to deliver more gas to market on days of high demand,” but “constraints on [Algonquin’s] take-away capability from the LNG plant prevented DOMAC from doing so,” it told FERC.

Moreover, it believes the proposed connection and extension will help to “offset certain interruptions of DOMAC’s operations caused by scheduled maintenance outages on the Algonquin system.” Between 2000 and 2002, DOMAC said it had 109 days of reduced firm transportation service and two days of no service due to maintenance outages on the existing Algonquin system.

DOMAC noted it has entered into a precedent agreement with Algonquin for 50,000 MMBtu/d of firm transportation over a 20-year period on the proposed Everett extension.

In addition to building the 300-foot send-out line and other associated facilities, DOMAC proposes to modify the LNG plant’s control system and reconfigure its existing vaporization equipment to allow higher pressure deliveries into the HubLine facilities through the DOMAC connection. The project is estimated to cost $2.4 million.

DOMAC said it will finance the proposed facilities “entirely out of funds on hand and will assume the full economic risk of the investment in the facilities.” Construction of the project will not affect the rates paid by existing or future customers, the company said, and it will have little impact on the environment. It asked FERC to issue a certificate by Dec. 1 of this year.

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