Stomach

The embattled Islander East Pipeline got another punch in the stomach Wednesday when a federal appellate court in New York affirmed a lower court’s decision that blocks the Connecticut-to-Long Island project from going forward.

Transcontinental Gas Pipe Line apparently could not stomach the rate implications of FERC’s recent order approving the $60 million Cross Bay Pipeline. The company, along with partners Duke and KeySpan, told the Commission the project is being canceled because of the rate changes proposed in the order and the lack of market interest.

Transcontinental Gas Pipe Line apparently could not stomach the rate implications of FERC’s recent order approving the $60 million Cross Bay Pipeline, which would have provided 125,000 Dth/d of incremental firm gas transportation into the New York City marketplace using a portion of Transco’s pipeline system along with new compression. Transco informed the Commission on Friday that project sponsors Williams, Duke and KeySpan will not be going through with the pipeline because of the rate changes proposed on Transco as a result of FERC’s order on Cross Bay and because the project still has no market agreements in place.