Maritimes & Northeast Pipeline filed an application with FERC for a 418,000 Dth/d pipeline expansion to support gas from the Canaport liquefied natural gas (LNG) import terminal, which is being built by Irving Oil and Repsol in Saint John, NB. The pipeline expansion would include the addition of five compressor stations in Maine, 1.7 miles of 30-inch diameter pipeline and modifications to other existing U.S. facilities.

Emera Inc., which owns Nova Scotia Power, Bangor Hydro-Electric and a 12.92% stake in Maritimes & Northeast, said it will invest $350 million to build a 90-mile, 30-inch diameter pipeline lateral from the proposed LNG terminal through southwestern New Brunswick to a connection with U.S. portion of the Maritimes & Northeast Pipeline at the international border near Baileyville, ME.

The Brunswick Pipeline will be capable of carrying 850 MMcf/d of regasified LNG and its capacity can be expanded with added compression. The lateral requires National Energy Board approval, and Emera said it will file an application shortly. Construction of both the Maritimes expansion and the Brunswick lateral is expected to be completed by late 2008.

“The Canaport LNG regasification terminal in Saint John offers a new reliable source of natural gas and increases energy supply diversity and security for the region,” said Maritimes President Doug Bloom. “This new supply source will help minimize the impact on consumers of disruptions brought on by events like last year’s hurricanes.” He also said the expansion would provide Maritimes’ shippers with a “significant rate reduction.

“Canaport LNG could be the first LNG regasification terminal on the Atlantic coast to be constructed in decades and is a welcome development for energy consumers from New Brunswick to Maine, and New Hampshire to Massachusetts,” said Bloom.

Emera has negotiated a 25-year send-or-pay toll agreement with Repsol to transport gas through the Brunswick Pipeline. Emera also has negotiated agreements with its Maritimes partner, Duke Energy, to have an affiliate of Duke continue its lead role in the Brunswick pipeline permitting process, and ultimately construct and operate the pipeline on Emera’s behalf.

“This is a solid opportunity for Emera to grow its business with a quality project that builds on our investment in Maritimes,” said Emera CEO Chris Huskilson. “LNG will play an important role in the energy security of the region, and will bring economic benefits. We are proud to be part of that.”

Phil Ribbeck, director of LNG in North America for Repsol, said the transactions with Maritimes and Emera ensure the completion of the Canaport project. “Demand for LNG is strong through the Northeast. This agreement on natural gas transmission, along with agreements with Maritimes, completes the full value chain arrangements, and will enable our project to be first to market with secure natural gas supplies,” he said.

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