Two dueling pipeline projects from New England to Long Island,NY, unveiled open seasons last week. Tennessee Gas Pipeline Co., anEl Paso unit, is planning one line, the Connecticut-Long IslandPipeline, while Duke Energy Gas Transmission (DEGT) and KeySpanEnergy Delivery Long Island (KEDLI) are partnering on the competingproject, called Islander East. Open seasons on both will concludeFeb. 28.
“I don’t think that both projects can co-exist,” said PatWhitty, managing director with DEGT. “There appears to be onlyenough market to support one northern alternative pipeline into NewYork at this time.”
The Tennessee project would provide up to 450,000 Dth/d of newtransportation capacity from the company’s interconnection withjoint facilities of Maritimes & Northeast Pipeline and PortlandNatural Gas Transmission System Co. in Dracut, MA, and terminate inSuffolk County on eastern Long Island.
The proposed 40-mile Islander East line is expected to carry250,000 Dth/d from an interconnection with DEGT’s Algonquin GasTransmission system in Connecticut. Firm transportation servicesoffered will be provided on a non-discriminatory, open accessbasis, DEGT said. The proposed pipeline project will be equallyowned by DEGT and KEDLI under a limited liability company, IslanderEast Pipeline LLC.
Tennessee said its project will deliver to various localdistribution companies and their facilities, including Yankee GasServices, Connecticut Natural Gas, Southern Connecticut Gas andKeySpan Energy Delivery Long Island, as well as directly toproposed power generating plants along the way.
“This project maximizes the opportunities to deliver energy tocritical regions by optimizing the existing pipeline andtransportation assets located in these areas,” said Stephen C.Beasley, president of Tennessee Gas Pipeline. “A cost effective andcompetitive pipeline linking New England and New York will increaseflexibility, reliability and liquidity for natural gas consumers inthese markets.”
Islander East would extend from Connecticut across Long IslandSound to Wading River, NY, and other points on Long Island, whereit would connect with KEDLI. The companies believe the time isright for Islander East because it would have access to almostevery major supply basin in North America, including the recentlydeveloped Sable Island off the coast of Nova Scotia in AtlanticCanada. Its backers said it would be possible through Algonquin’sproposed interconnection with Maritimes & Northeast.
“Islander East enhances KeySpan’s position as a major energysupplier in the Northeast. The pipeline will dramatically increaseand diversify our access to gas supplies, enhance the competitiveprice of gas for our customers in the Northeast, and help reducethe cost of electric-power production,” said Robert B. Catell, CEOof KeySpan. “It will also mean greater energy reliability,flexibility and security for energy consumers on Long Island and inthe New York City area.”
“Demand for natural gas in Long Island and New York City isgrowing at a greater rate than anywhere else in the country andIslander East will deliver critical supplies of natural gas tothose areas,” said Robert Evans, president of DEGT, who will alsobe the project manager for Islander East. “This growth is expectedto continue over the next several years as more homes convert tonatural gas and as gas-fired electric generating plants are builton Long Island.”
Pending the outcome of both open seasons, The companies saidthey both expect to have their pipelines operating sometime during2003. Interested shippers on the proposed Tennessee line shouldcontact Joe Wyzik with El Paso at 713-420-2369, while shippersseeking information about the Islander East project can contact PatWhitty with DEGT at 617-560-1447.
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