Maritimes & Northeast Pipeline LLC. said last week that it has submitted an application to the Federal Energy Regulatory Commission (FERC) to further expand its natural gas pipeline system. Designated as the Phase IV project, the $250 million expansion will allow Maritimes to nearly double its capacity to transport natural gas from offshore Nova Scotia to markets in the northeastern United States.

Once completed, the Phase IV project is expected to increase capacity from approximately 415,000 to 800,000 Dth/d, which will help meet the growing demand for natural gas in New England and the Northeast. Maritimes said it has received substantial requests for transportation services from local natural gas distribution companies, natural gas-fired electric generators and third-party marketers during a recently completed open season nominations period.

“The demand for natural gas is real, and it is significant,” said Tom O’Connor, president of M&N Management Co., the managing member of Maritimes. “Maritimes is able to respond to the demand by efficiently and economically expanding its system to deliver new supplies of gas from fields off Canada’s East Coast. Access to additional sources of this cleaner-burning fuel will ensure greater energy reliability and flexibility for the northeast region.”

In June 2001, Maritimes signed agreements with PanCanadian Energy Services Inc. to transport up to approximately 400 MMcf/d of natural gas from PanCanadian’s Deep Panuke project, offshore Nova Scotia to markets in Atlantic Canada and New England (see NGI, June 18, 2001; June 25, 2001). The Phase IV expansion project will accommodate the increased volumes of gas.

Maritimes said the new expansion complements the planned Phase III extension of the Maritimes pipeline from Methuen to Beverly, MA. The Phase III extension will interconnect the 650-mile Maritimes pipeline with Algonquin Gas Transmission Co.’s 1,000-mile system through Algonquin’s proposed HubLine project. The Maritimes Phase III and Algonquin HubLine projects recently received final approval from FERC.

Included in the Phase IV project, Maritimes said it expects to construct four compressor stations in Maine, each with approximately 26,800 horsepower of additional compression and approximately 31.3 miles of additional pipeline loop facilities in Maine’s Washington County. The company said the new compressor stations are proposed to be located in the municipalities of Eliot, Gorham, Brewer and Searsmont.

“We will work closely with federal, state and municipal officials as well as landowners and stakeholders throughout the FERC process to ensure the project is designed and constructed with minimal impact to communities and the environment,” said Bill Penney, senior vice president and general manager of Maritimes. “As we proceed with the Phase IV expansion, Maritimes will continue its solid record of environmental, safety and operational compliance.”

In addition to the FERC application, Maritimes will submit applications to other appropriate federal and state agencies, including the U.S. Army Corps of Engineers, the U.S. Environmental Protection Agency, Coastal Zone Management and Maine Department of Environmental Protection. The Phase IV expansion is expected to be in service in 2004.

Maritimes is owned by affiliates of Duke Energy (37.5%); Westcoast Energy, Inc. (37.5%); ExxonMobil (12.5%); and Emera Inc. (12.5%).

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