The Federal Energy Regulatory Commission (FERC) issued a preliminary determination on non-environmental issues to the Islander East Pipeline Co. LLC to build a 40-mile pipeline that will bring natural gas from Connecticut to Long Island, NY.

Duke Energy Gas Transmission (DEGT) and KeySpan Energy Delivery Long Island (KEDLI) first announced its plans for the proposed line in January (see Daily GPI, Jan. 30). The proposed pipeline project will be equally owned by the two companies under Islander East Pipeline LLC.

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. 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 Island off the coast of Nova Scotia in Atlantic Canada. Its backers said it would be possible through Algonquin’s proposed interconnection with Maritimes & Northeast Pipeline.

The companies said that they expect to have the pipeline operating in 2003, initially providing 250,000 Dth/d of natural gas to the Long Island and New York City energy markets, enough to heat 600,000 homes.

However, the Islander East project is not the only game in town. Following the Islander announcement, El Paso Corp.’s Tennessee Gas Pipeline Co. revealed a project that would provide up to 450,000 Dth/d of new transportation capacity from the company’s interconnection with joint facilities of Maritimes & Northeast Pipeline LLC. and Portland Natural Gas Transmission System Co. in Dracut, MA, and terminate in Suffolk County on eastern Long Island (see Daily GPI, Feb. 1).

Tennessee said its project will deliver to various local distribution companies and their facilities, including Yankee Gas Services, Connecticut Natural Gas, Southern Connecticut Gas and KeySpan Energy Delivery Long Island, as well as directly to proposed power generating plants along the way.

Also throwing its hat into the ring back in April, Iroquois Gas Transmission System LP announced an open season yesterday for Zone 2 firm transportation capacity for delivery on its proposed Eastern Long Island Expansion (see Daily GPI, April 3).

Iroquois proposes to construct 20 miles of 24-inch diameter marine pipeline from Milford, CT, to Shoreham, Long Island, and points farther inland as the market demands.

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