Tennessee Gas launches open season for New England pipe expansion

Houston (Platts)--14Feb2014/311 pm EST/2011 GMT


Tennessee Gas Pipeline has launched an open season through March 28 for an expansion bringing up to 2.2 Bcf/d of gas into the New England area.

The Northeast Expansion Project would address long-term energy needs of New England and Atlantic Canada by providing access to "abundant" new supplies from the Marcellus and Utica shales, Tennessee Gas said in a Thursday notice.

In late January, a group of New England governors and the New England States Committee on Electricity began pushing for an electricity tariff to prompt the construction of gas pipelines by the end of 2017.

The initiatives suggested that adding these "significant volumes" to Northeast markets should provide sufficient incremental supply to lower the price of gas in New England and enhance reliability of gas and electricity grids, the notice said.

The line could also provide supply diversity across its thousands of miles of pipeline from South Texas to New England.

The expansion is currently planned to be in service in November 2018 and would involve building 179 miles of pipeline from Wright, New York, to Dracut, Massachusetts, as well as sufficient horsepower of new compression to efficiently transport between 600,000 Mcf/d and 2.2 Bcf/d.

The high production levels in the Marcellus have inspired multiple south-to-north projects in recent months, with several specifically meant to penetrate the constrained yet premium-priced New England markets.

Constitution Pipeline is a 650,000 Dt/d pipeline from Susquehanna County, Pennsylvania, to Iroquois Gas Transmission at Wright, New York, with an in-service date of March 2015.

Dominion Transmission recently held an open season for up to 250,000 Dt/d from Leidy to Iroquois at Canajoharie, New York, with an in-service date of November 2016. Algonquin Gas Transmission looking at expanding its capacity into New England by up to an additional 342,000 Dt/d with an in-service date of November 2016 with its Algonquin Incremental Market expansion.

In addition, Tennessee Gas has proposed its 72,000 Dt/d Connecticut Expansion Project to increase capacity from Tennessee's existing interconnection with Iroquois to Zone 6 delivery points on Tennessee's 200 and 300 lines in Connecticut. The project has an in-service date of November 2016.

Just last week, Spectra Energy began its open season for the Atlantic Bridge project, aimed at moving at least 100,000 Mcf/d from receipt points, such as the interconnection with the Millennium Pipeline at Ramapo, New York, and as far upstream as the interconnection with Texas Eastern Transmission at Lambertville, New Jersey, to existing and new delivery points on Spectra's Algonquin and Maritimes pipeline systems in November 2017.

--T.L. Hamilton, tiffany.hamilton@platts.com --Edited by Annie Siebert, ann.siebert@platts.com




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