Dominion natural gas transmission and storage subsidiary Dominion Transmission has struck a 10-year lease agreement with Tennessee Gas Pipeline Co. for firm capacity in support of a project to move Marcellus Shale gas.

The Ellisburg-to-Craigs project, with capacity of 150,000 Dth/d, will move gas from Tennessee’s 300 Line in northern Pennsylvania to its 200 Line in upstate New York. “Dominion Transmission’s hub-and-spoke network crisscrossing the Marcellus Shale producing area provides many opportunities to help transport new natural gas supplies to market,” said Dominion CEO Thomas F. Farrell II.

Dominion said it plans to file for a Federal Energy Regulatory Commission certificate for the project in December. Construction is expected to begin in March 2012 for an in-service date of Nov. 1, 2012. The project is to include additional compression facilities and a new measurement and regulating station at the Craigs interconnect with Tennessee in New York. Dominion said it will also add regulating facilities on its system in northern Pennsylvania.

In June Dominion Transmission announced an agreement with Consol Energy Inc. to carry its Marcellus gas (see Daily GPI, June 15).

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