Iroquois Gas Transmission System LP has notified FERC that it is withdrawing its application to build its eastern Long Island (ELI) extension due to “lack of continued customer support for this project,” which would have provided approximately 175,000 Dth/d of new firm transportation service to the expanding natural gas market through a new line under Long Island Sound from Connecticut.

In early January, Iroquois said three of the project’s five prospective shippers — Consolidated Edison Energy Inc., Mirant New York Inc. and Engage Energy America LLC — exercised their rights to terminate their precedent agreements for capacity on the planned ELI extension. A fourth customer, New York Power Authority (NYPA), was on the fence at the time about its participation in the project (CP02-52).

Iroquois noted it sent letters later in January to the two remaining customers, NYPA and the Long Island Power Authority, telling them if it did not receive a “positive response” from them, the pipeline would terminate the project. “Iroquois has had no response to its letters from either customer,” the pipeline told the Commission.

Iroquois officials indicated last summer that they probably would not proceed with the eastern Long Island extension if Duke Energy Gas Transmission and KeySpan Energy continued with their competing Islander East pipeline project, which also would serve the Long Island market. FERC awarded a certificate to the Islander East project last September, and a preliminary determination on non-environmental issues to Iroquois’ ELI extension (See Daily GPI, Sept. 19, 2002).

Islander East would carry over 260 MMcf/d and ultimately more than 400 MMcf/d from Connecticut under Long Island Sound to connect with KeySpan’s Long Island line. FERC also issued a certificate for a companion extension project (Hubline) and expanded capabilities of Duke’s Algonquin Gas Transmission in Connecticut to feed into the project, allowing gas from Sable Island in Nova Scotia to be delivered into the system. Islander East has targeted an in-service date of November 2003.

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