Northeast

Maritimes & Northeast Pipeline celebrated the new millenniumwith the rattle and hum of initial gas flowing from the shorelineof Nova Scotia 650 miles to markets in the northeastern UnitedStates. After struggling through an 11th hour Indian dispute inCanada, the pipeline company said it opened its valves Jan. 1.

The Maritimes & Northeast Pipeline overcame a significantpolitical hurdle last week, signing an agreement with protestingNova Scotia Indians that smoothes the way for deliveries of 450MMcf/d of Sable Island gas to begin by the end of the year. Theagreement with the Assembly of the Nova Scotia Mi’kmaq Chiefscovers a wide variety of environmental and socio-economic programsgiving native Indians a head start on industry-related jobs andtraining and ensures that Indians on a Mi’kmaq reserve will be thefirst Atlantic Canadians to receive gas. The National Energy Boardadded its final stamp of approval.

A very divided FERC last week dealt a potentially crippling blowto the controversial Independence Pipeline and associatedSupplyLink and MarketLink expansion projects, requiring them toshow documented proof of binding, long-term contracts for more thantwo-thirds of their project’s firm capacity before they can beginconstruction, as well as to satisfy more than 100 environmentalconditions. The Commission dismissed a major affiliate contract,casting doubt on the market support for the eastward-boundIndependence and SupplyLink projects.

A very divided FERC yesterday dealt a major blow to thecontroversial Independence Pipeline and associated SupplyLinkexpansion projects, requiring each to submit long-term firmcontracts for about 70% of capacity before they can beginconstruction, as well as to satisfy more than 100 environmentalconditions.

A Nov. 1 target went by without a start on deliveries to thenortheastern United States by the new Maritimes & NortheastPipeline (M&NP), but it says there is no real delay and thetiming has nothing to do with a last-minute tangle with Indiansbefore the National Energy Board.

Maritimes & Northeast Pipeline said it’s confident aresolution to a dispute with the Mi’kmaq Indians in Nova Scotia canbe reached in time to avoid a delay in initial service past Dec. 1.

While scores of pipelines are jockeying to supply gas to newpower generators in the Northeast market, PG&E Gas Transmission— the 7th largest pipeline in the nation — is turning itsattention to the rapidly growing generation markets in the PacificNorthwest and Texas, where the competition from rival pipelines ismuch less fierce.

Bath Petroleum Storage, Inc. (BPSI), a company operating in aprime Northeast salt cavern storage location, is up for sale.

Bath Petroleum Storage, Inc. (BPSI), a company operating in aprime Northeast salt cavern storage location, is up for sale.