Duke Energy Gas Transmission (DEGT) and KeySpan Energy DeliveryLong Island (KEDLI) announced yesterday plans for an open seasonfor transportation services on their proposed Islander Eastpipeline, a 40-mile line that will bring natural gas fromConnecticut to Long Island, NY.

The open season for non-binding nominations will run untilWednesday (Feb. 28). Firm transportation services offered will beprovided on a non-discriminatory, open access basis, the companiessaid. The proposed pipeline project will be equally owned by thetwo companies under a limited liability company, Islander EastPipeline L.L.C.

“Islander East enhances KeySpan’s position as a major energysupplier in the Northeast. The pipeline will dramatically increaseand diversify our access to gas supplies, enhance the competitiveprice of gas for our customers in the Northeast, and help reducethe cost of electric-power production,” said Robert B. Catell, CEOof KeySpan. “It will also mean greater energy reliability,flexibility and security for energy consumers on Long Island and inthe New York City area.”

Originating from DEGT’s Algonquin Gas Transmission’s system, thepipeline — made from 24-inch and 30-inch diameter pipe — wouldextend from Connecticut across Long Island Sound to Wading River,NY, and other points on Long Island, where it would connect withKEDLI. The companies believe the time is right for Islander Eastbecause it would have access to almost every major supply basin inNorth America, including the recently developed Sable Island offthe coast of Nova Scotia in Atlantic Canada. Its backers said itwould be possible through Algonquin’s proposed interconnection withMaritimes & Northeast Pipeline.

“Demand for natural gas in Long Island and New York City isgrowing at a greater rate than anywhere else in the country andIslander East will deliver critical supplies of natural gas tothose areas,” said Robert Evans, president of DEGT, who will alsobe the project manager for Islander East. “This growth is expectedto continue over the next several years as more homes convert tonatural gas and as gas-fired electric generating plants are builton Long Island.”

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

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