FERC issued final certificates Wednesday morning to the Maritimes & Northeast Pipeline Phase III expansion project and related HubLine expansion by Algonquin Gas Transmission. The integrated expansions will increase transportation of Atlantic Canadian gas to the Boston area. In addition, Iroquois’ Eastchester project received a final green light from FERC. The $174 million Eastchester project will add 230,000 Dth/d of capacity to the Iroquois system to increase deliveries mainly to New York City power generators.

The Federal Energy Regulatory Commission denied rolled-in rate treatment for Eastchester, stating that, contrary to Iroquois’ claims, the project’s cost actually would exceed its revenues, requiring existing firm shippers to subsidize a portion of the project. Iroquois had said the project would provide $2.8 million in annual net financial benefits, but FERC found that it actually would cost existing shippers $2.9 million. As a result, the Commission left the rates to be settled in a future proceeding.

The 33-mile pipeline extension will connect Iroquois’ existing system in Suffolk County with Consolidated Edison’s system in the Bronx. Iroquois hopes to complete the extension by November 2002. It signed 10-year precedent agreements for the capacity with five shippers: Virginia Power Energy Marketing (20,000 Dth/d), Mirant New York Management (60,000), KeySpan Ravenswood (60,000), Consolidated Edison Energy (30,000) and Orion Power Holdings (60,000). ConEd, KeySpan and Orion will use their capacity to serve power generation load. FERC also said the pipeline must finalize its agreements with shippers prior to moving forward with construction.

Iroquois Gas Transmission System is a partnership of 10 U.S. and Canadian energy firms and is owner of a 375-mile interstate pipeline extending from the U.S.-Canadian border at Waddington, NY, through western Connecticut to Long Island, NY.

The companion expansion projects of Maritimes & Northeast and Algonquin call for Maritimes to construct an extension in a southeasterly direction through several Massachusetts counties to the East Coast where a new Algonquin line would connect and extend offshore down the coast through Boston Bay to a connection with Algonquin’s existing system at Weymouth on the south side of Boston Harbor. The two pipeline projects are designed to supply up to 230,500 Dth/d to the gas-starved New England region and are targeted for service by November 2002.

The so-called Phase III extension of the 600-mile Maritimes pipeline, which imports Atlantic Canadian gas to the Northeast from the Sable Offshore Energy Project offshore Nova Scotia, will include 24 miles of 30-inch diameter pipeline and one mile of 24-inch diameter pipeline, extending from Methuen, MA, through a number of counties to a connection with Algonquin’s proposed extension in Beverly, MA. The project, which has an estimated price tag of $133.9 million, would provide firm transportation service to serve growing markets on the east end of Algonquin’s system.

Algonquin’s HubLine project, which has a projected cost of $127 million, will include about 29 miles of 24-inch diameter pipeline, extending offshore from an interconnection near Beverly with Maritimes’ proposed Phase III project to an interconnection with Algonquin’s existing I-9 lateral in Weymouth. Algonquin also plans to build a 5.4-mile, 16-inch diameter lateral from the proposed pipeline to a wastewater treatment plant owned by Massachusetts Water Resources Authority on Deer Island.

©Copyright 2001 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.