Tennessee Gas Pipeline Co. hasn’t given up on targeting New England power generation demand for gas. The pipeline is holding an open season for its Eastern Express: New England Expansion through 2 p.m. CST Oct. 15.

The open season, which began last week, follows up on an Eastern Express Project 2000 March expansion filing at the FERC for an additional 168 MMcf/d of capacity from additional compression at Dracut, MA (see NGI, March 22).

Fueled by new supplies entering the northeastern region of the United States, the New England Expansion is designed to provide firm transportation service to the developing power generation sector in New England and the Mid-Atlantic region. Service is scheduled to begin fall 2001.

“This project is another example of the type of scaleable expansions Tennessee Gas Pipeline can offer to support emerging supply and market opportunities,” said John Somerhalder, Tennessee president. “The Eastern Express Project 2000 laid the groundwork for additional transportation options in New England. The New England Expansion takes Eastern Express Project 2000 a step further by increasing the ability to transport gas to new markets in New England and the Mid-Atlantic region.”

The New England Expansion augments the Eastern Express Project 2000, which was filed with the FERC March 17. Project 2000 will provide firm transportation service from an interconnect at Dracut, MA, with the Portland Natural Gas Transmission System/Maritimes and Northeast Joint Pipeline to delivery points in New England. The New England Expansion, for which the current open season is being held, will expand Tennessee’s infrastructure using existing rights-of-way and facilities to minimize greenfield construction.

An El Paso spokeswoman said Tennessee did not know how much interest in capacity to expect from the current open season. After several open seasons in 1997 and 1998, Tennessee said there were requests for capacity from the Gulf of Mexico north to New England, from Chicago and Niagara east to the Mid-Atlantic, and from its connection with Maritimes and PNGTS in Massachusetts to new power generation demand in the Northeast. But only a very small amount of proposed capacity ever came under contract.

Eastern Express had been whittled down to what most would consider to be a relatively minor capacity addition for a number of reasons, not the least of which is the anticipation that many of Tennessee’s long-term contracts will expire in 2000.

According to the Gas Research Institute (GRI), Tennessee should be able to count on hefty demand for gas from New England power generation projects. A 1998 GRI study found the New England, Middle Atlantic, South Atlantic and East North Central (Illinois, Michigan, Ohio} Census regions will account for 40% of generation gas demand by 2015, up from the current 29%.

The open season is considered non-binding for participants and Tennessee. A separate open season for capacity turnbacks is planned. Transportation rates will be negotiated as part of precedent agreements with parties participating in the open season. Service requests must be for a minimum of 10 years and a maximum of 20 years. The project has a planned in-service time frame between Sept. 1 and Nov. 30, 2001. Some service may be available earlier, and shippers should note if they desire earlier service.

For information, call Rob Haas, (617) 790-5822; Tina Sciaraffa, (617) 342-3682; or send a faxed request to (617) 204-5787. Information will also be available next week on the Internet at www.tennesseeadvantage.com/neexpand/.

Joe Fisher, Houston

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