The Federal Energy Regulatory Commission last week issued a favorable draft environmental review to Islander East Pipeline Co. LLC to build a 50-mile pipeline that will transport natural gas from Connecticut to the Long Island, NY, market.

“We concluded that, with the use of Islander East’s proposed mitigation and adoption of our recommended mitigation measures, construction and operation of the proposed facilities would have limited adverse environmental impact,” the Commission staff wrote in its draft environmental impact statement (DEIS) on the project.

The DEIS comes nearly four months after the Commission awarded a favorable preliminary determination for the Islander East line, which will be equally owned by Duke Energy Gas Transmission (DEGT) and KeySpan Energy Delivery Long Island (KEDLI).

Originating from DEGT’s Algonquin Gas Transmission’s system, the pipeline — made from 24-inch and 30-inch diameter pipe — would extend from Connecticut across Long Island Sound to Wading River, NY, and other points on Long Island, where it would connect with KEDLI (CP01-387).

The companies believe the time is right for Islander East because it would have access to almost every major supply basin in North America, including the recently developed Sable Offshore Energy Project off the coast of Nova Scotia in Atlantic Canada. Sable supplies would be available through Algonquin’s proposed interconnection with Maritimes & Northeast Pipeline.

Islander East and the pending Algonquin project — to upgrade 13 miles of existing pipeline and build a new compressor station in Cheshire, CT — are expected to provide 260,000 Dth/d of natural gas for energy markets in Connecticut, Long Island and New York City. The gas supplied will be enough to heat approximately 600,000 homes and meet local gas company growth on Long Island and in New York City, according to the DEIS.

Both the Islander East and Algonquin project — which also was addressed favorably in the DEIS — are targeted for in-service in 2003.

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