FERC issued an order authorizing additional compression on Algonquin Gas Transmission that is designed to help affiliate Texas Eastern Transmission (Tetco) increase its delivery capabilities on a constrained part of its system in New York and New Jersey.
Over the past few winters, Tetco has faced increasing constraints on its system east of Lambertville, NJ. It set an all-time delivery record there in winter 1999-2000 and had to issue operational flow orders to control the flow of gas. This joint project between two pipelines is designed to help relieve the constrained area by upgrading two compressors at Algonquin’s Hanover Compressor Station in Hanover, NJ, at a cost of $6.7 million. The change will allow Tetco to shift 200,000 Dth/d of deliveries from the Hanover station to Algonquin’s Lambertville, NJ, interconnect. It also will give Tetco another 135,000 Dth/d of additional capacity from the Lambertville point 44 miles to the terminus of its system in Richmond County, NY.
If the additional capacity isn’t required by Tetco’s customers, Algonquin can take the 200,000 Dth/d of deliveries at its Hanover point. Tetco has agreed to reimburse Algonquin for the cost of the project and plans to file for rolled-in rate treatment in its next Section 4 rate proceeding.
Tetco didn’t conduct an open season for the additional capacity and had no market agreements for the additional capacity, but it did submit statistical evidence that shows demand continues to grow in the region.
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