Iroquois Gas Transmission System LP’s Tuesday urged FERC to issue an order on an expedited basis allowing it to start up phase one of its expansion to provide increased natural gas supplies to Long Island and New York City.

The pipeline is seeking authorization from the Federal Energy Regulatory Commission (FERC) to begin operating phase one of the so-called 08/09 Expansion Project (the 36-inch diameter Newtown Loop segment in Newtown, CT) on Nov. 1, the start of the 2008-2009 winter heating season.

“The contract that Iroquois has with KeySpan Gas East Corp., the firm transportation customer being served by the 08/09 Expansion Project, calls for the Newtown Loop (the Phase I facilities) to be in service by Nov. 1. Further, Algonquin Gas Transmission LLC , the upstream shipper, has recently filed to place facilities it is constructing to serve KeySpan into service on Nov. 1.” Iroquois called on FERC to approve its request by Oct. 29.

With these facilities, Iroquois would act as a middleman between Algonquin 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 volumes would be delivered by Algonquin to Iroquois at Brookfield, CT, for subsequent delivery by Iroquois to KeySpan to serve the New York City and Long Island markets, Iroquois said [CP07-457].

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

The Iroquois expansion includes two other phases — construction of two 10,300 hp compressor units at a new compressor station in Milford, CT, by Jan. 1, 2009 (Phase 2); and the addition of a 10,300 hp compressor unit to Iroquois’ Brookfield Compressor Station in Brookfield by Nov. 1, 2009 (Phase 3).

©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.