The FERC has conditionally approved the proposed Constitution Pipeline Project and related interconnection facilities to enhance natural gas supply options to New York and New England.
On December 2, 2014, the Federal Energy Regulatory Commission (FERC) conditionally granted Constitution Pipeline Company LLC’s application for authorization to construct and operate an approximately 124-mile, 30-inch pipeline from Pennsylvania to a proposed interconnection with Iroquois Gas Transmission System LP in New York. The approval also includes blanket certificates to provide open-access transportation services and perform certain routine construction activities and operations.
The FERC also granted Iroquois’ application for authorization to construct and operate compression facilities and modify existing facilities at its Wright Compressor Station. Constitution and Iroquois have entered into a pro forma capacity lease arrangement providing that Iroquois will construct and operate the Wright Interconnection Project facilities to deliver gas into the Iroquois and Tennessee pipeline system and to abandon by lease to Constitution the incremental capacity associated with the proposed compression.
According to Constitution the proposed interstate pipeline – designed to transport up to 650,000 dekatherms per day of natural gas – would be placed in service in 2015. The pipeline would enhance New York’s natural gas supply options via an interconnection with the existing Iroquois Pipeline. It would also provide New England markets with low-cost natural gas via an interconnection with the existing Tennessee Gas Pipeline. Constitution estimates the proposed facilities to cost approximately $683M.
According to FERC, the potential market benefits of the Constitution Pipeline Project and Wright Interconnection Project outweigh any adverse effects on existing shippers, other pipelines and their customers, and on landowners and communities. The FERC’s final environmental review of the proposed pipeline – published on October 24 – concluded that environmental impacts would be reduced to less than significant levels by implementing proposed mitigation measures and FERC recommendations.
Originally published by EnerKnol.
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