FERC Friday gave a favorable environmental review of Iroquois Gas Transmission System LP’s proposed system expansion that would provide increased natural gas supplies to Long Island and New York City.

“Approval of the proposed project, with appropriate mitigating measures, would not constitute a major federal action significantly affecting the quality of the human environment,” staff of the Federal Energy Regulatory Commission said in an environmental assessment (EA) of the Iroquois 08/09 Expansion Project [CP07-457].

Iroquois proposes to loop its existing pipeline system in three locations in New York and Connecticut by Nov. 1 (Phase 1); construct a new compressor station in Milford, CT, with 20,620 hp of compression by Jan. 1, 2009 (Phase 2); and add a 10,310 hp compressor unit to Iroquois’ Brookfield Compressor Station in Brookfield, CT, by Nov. 1, 2009 (Phase 3).

The proposed expansion would enable Iroquois to deliver up to 200,000 Dth/d of natural gas to KeySpan Gas East Corp. at South Commack, LI.

With these facilities, Iroquois would act as a middleman between Algonquin Gas Transmission LLC and KeySpan. Algonquin has entered into a precedent agreement with KeySpan to deliver 175,000 Dth/d of firm natural gas service effective Nov. 1 and an additional 25,000 Dth/d commencing Nov. 1, 2009, the FERC EA said. The volumes would be delivered by Algonquin to Iroquois at Brookfield for subsequent delivery by Iroquois to KeySpan to serve the New York City and Long Island markets, Iroquois said.

Because the pressure in the Iroquois mainline is substantially higher than the pressure in the Algonquin pipeline at Brookfield, Iroquois currently is only able to deliver gas into, but not receive gas from, the Algonquin system. The proposed expansion would allow Iroquois to receive gas from Algonquin.

©Copyright 2008Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.