Northeast market area demand growth has prompted Dominion Transmission Inc. (DTI) to plan a storage expansion project. Dominion is holding an open season for up to 6 Bcf of storage capacity and 100,000-200,000 Dth/d of deliverability under 15-year contract terms. The 30- to 60-day firm service would be available starting in the 2004-2005 winter heating season.

“DTI’s exhaustive review of market fundamentals shows that Northeast demand increase will be most efficiently met through the use of seasonal storage with short-haul pipes to market,” said Joe Kienle, director of business development. “Unlike the long-haul pipeline or traditional 151-day service, this product is specially designed for the next phase of Northeast demand growth.”

The open season offers a limited opportunity to obtain market-area storage, Dominion said. “This storage should appeal to marketers, power generation developers and local distribution companies because of its value, flexibility and reliability. The final facilities, rates and capacity for the expansion will be determined by the results of the open season.”

A spokesman said the company had not yet determined which storage fields would be involved in the expansion. Storage injections under the new service must be received at Dominion’s North Point, but withdrawals may be redelivered at numerous Dominion points, including Leidy. The spokesman said restricting deliveries to North Point would allow Dominion to avoid a pipeline expansion.

Dominion said it expects the service terms to be comparable to its existing rate schedule GSS. Pricing will be determined by the demand for service and the amount of existing capacity turned back. The open season began Wednesday and will conclude May 3. For more information, contact Jeff Keister at (304) 627-3286 or at jeff_keister@dom.com.

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