FERC on Thursday issued decisions in four separate natural gas pipeline and storage cases that would expand the interstate gas infrastructure system in the United States.

Specifically, the Federal Energy Regulatory Commission awarded a preliminary determination (PD) to Empire State Pipeline LLC and Empire Pipeline Inc. to build a 78-mile line that would import Canadian gas to markets in the U.S. Northeast; approved Bobcat Gas Storage’s proposal to build a new salt dome gas storage facility in Louisiana; and issued Tennessee Gas Pipeline a certificate to build an eight-mile pipeline in Massachusetts [CP05-5, CP06-6, CP06-67 and CP06-18].

In addition, FERC approved the marriage of two Scana subsidiaries, South Carolina Pipeline Corp. (SCPC) and SCG Pipeline Inc. (SCG), to form a new open-access interstate gas pipeline transportation system. The agency’s actions authorizes the merged company to form Carolina Gas Transmission Corp. to acquire and operate SCG’s 31-mile interstate pipeline and SCPC’s 1,400-mile intrastate pipeline and associated facilities for the purpose of creating a single interstate pipeline. SCG’s pipeline extends from the tailgate of the Elba Island, GA, liquefied natural gas (LNG) import terminal to Jasper County, SC, where it interconnects with SCPC’s system [CP06-71, CP06-72 and CP06-73].

Carolina Gas will transport about 606 MMcf/d of natural gas from various supply regions in the Gulf Coast, north Louisiana and north Texas. It also will receive up to 190 MMcf/d of gas from Southern Natural’s Elba Island terminal. The volumes will primarily serve growing markets in South Carolina and elsewhere in the Southeast region.

The so-called Empire Connector is part of a much larger pipeline project known as the Northeast Project that would provide gas to markets in New York, New Jersey and New England. Other participants in the project include the proposed Millennium Pipeline, Columbia Gas Transmission and Algonquin Gas Transmission. The Northeast Project is an alternative to, and a scaled-down version, of the original Millennium Pipeline project that FERC approved in September 2002, but that New York State blocked on environmental grounds associated with the pipeline’s Hudson River crossing near Haverstraw Bay.

Millennium restructured the project to avoid crossing the river and is utilizing a number of other existing pipelines — Empire included — to serve demand in New York City and the region. FERC issued draft environmental approval of the Northeast Project last month.

The Empire Connector would be a 78-mile, 24-inch diameter line extending from Victor, NY, to a connection with the proposed Millennium line near Corning, NY. The Connector facilities would connect Empire State’s intrastate line with Millennium’s proposed interstate system in New York. The $144 million proposed line would deliver up to 250,000 Dth/d of gas in winter months and up to 221,100 Dth/d during the summer months. Other facilities to be constructed include a 20,620 horsepower compressor station on Empire’s existing pipeline near Oakfield, NY.

As part of the project, the Commission made a preliminary determination to approve Empire Pipeline’s request to convert its intrastate pipeline — Empire State — to an interstate pipeline, subject to FERC jurisdiction.

FERC also approved Bobcat Gas Storage’s proposal to construct and operate a high-deliverability storage project in St. Landry Parish, LA, near Eunice and the Henry Hub.

Bobcat Gas, a subsidiary of Haddington Ventures III LLC, proposes to develop two salt caverns with total working gas capacity of 12 Bcf, injection capacity of 900 MMcf/d and maximum withdrawals of 1.2 Bcf/d. The project also calls for the construction of 16.1 miles of 24-inch diameter bidirectional pipe that would interconnect the storage facility with five interstate and one intrastate pipelines to transport Gulf Coast gas supply, including LNG, to markets throughout the U.S.

Bobcat urged FERC to approve the storage project by mid-July so it could begin construction before Louisiana’s rainy season and meet an in-service target of winter 2007. The Bobcat Gas project is being developed by Port Barre Investments LLC, which is owned by Haddington Ventures III.

Lastly, the Commission authorized Tennessee to build an eight-mile, 24-inch diameter pipeline to connect is Beverly-Salem Line 270C-100 to an existing pipeline located in Essex and Middlesex counties in Massachusetts. The proposed line would extend from Saugus, MA, to Lynnfield, MA, and would transport 82,300 Dth/d of natural gas to serve its customer, Distrigas of Massachusetts, as well as provide service along various points on Tennessee’s New England system.

The project is estimated to cost $38 million. Tennessee proposes to begin service in September 2007.

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