Maine Natural Gas (MNG) has signed a multi-year contract thatwill guarantee gas service to the Mid-Coast region of Maine. MNG, ajoint venture formed by CMP Group and Energy East, signed anagreement with the Federal Government to provide natural gastransportation to the Brunswick Naval Air Station located inBrunswick.

The LDC plans to construct a new underground pipeline to Freeport,and continuing on to Brunswick and Topsham. The supply will come fromtapping into the Maritimes and Northeast Transmission Pipeline (seeDaily GPI, Feb., 1). The 18-mile projectshould begin later this summer, with a tentative finish date ofSept. 1, 2001.

The contract designates MNG the responsibility of supplyingnatural gas to 33 buildings and 72 new housing units located on thenaval air base site, and additional naval housing complexes inBrunswick, and nearby Topsham. MNG is currently building a lateralfeed system to serve Calpine’s 540 MW generation facility which isstill under construction.

This comes as the latest maneuver in the race between MNG andBangor Gas to be the dominant distributor in Maine, what has beencalled by many as the last frontier for gas service. Currently,MNG is authorized to supply 36 Maine municipalities, and hopes tobuild a local distribution system to serve Gorham, and expand itsexisting system in Windham.

“We are extremely pleased to have been awarded this contract andlook forward to providing the Brunswick Naval Air Station withoutstanding service. Also, this agreement is the first step towardour goal of introducing the natural gas energy option to Maineconsumers along the entire mid-coast region of Maine in the yearsahead,” said Tim D. Kelley, MNG’s president.

CMP and Energy East announced plans for a merger last year, andhave been awaiting necessary approvals since then. The Securitiesand Exchange Commission is the only remaining approval needed (seeDaily GPI, April 11).

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