National Fuel Asks Extension of Gas Pipeline ; Line Would Supply Gas to New York City Area
Posted on: Saturday, 15 October 2005, 09:00 CDT
By David Robinson
National Fuel Gas Co. moved ahead Wednesday with its plans for a $144 million extension of its Empire State Pipeline between Rochester and Corning by filing a formal application for approval with federal regulators.
The filing with the Federal Energy Regulatory Commission begins the formal review of National Fuel's plans to build a 78-mile extension of the Empire State Pipeline that would link it with the Millennium Pipeline project that will stretch from the Southern Tier to the New York City area.
The extension of National Fuel's Empire State Pipeline, which stretches between Buffalo and Syracuse, is seen as a way to position the Amherst-based energy company as a significant player in transporting natural gas from western Canada to the gas-hungry New York City area.
The existing Empire State Pipeline now stretches for 157 miles between Buffalo and Syracuse. The extension, which would run between Rochester and Corning, would link the existing pipeline with the proposed Millennium Pipeline that will run from Corning to Suffern, N.Y.
"Certainly, this is a time to look at our energy markets for ways they can be served more efficiently and by creating more options," said Julie Coppola Cox, a National Fuel spokeswoman. "This will offer New York customers more supply options."
National Fuel officials hope to win approval of the extension from FERC by next spring. If that happens, construction could begin as early as the spring of 2007 and the pipeline could be in service by the fall of 2007.
"We're bringing to FERC a route that we have great confidence in," Cox said.
The extension would boost the Empire State Pipeline's existing capacity by almost 50 percent. The underground extension will be able to transport at least 250 million cubic feet of natural gas per day, with KeySpan Energy, the main New York City utility, planning to use at least 150 million cubic feet, or 60 percent, of that capacity, National Fuel said.
Behind the pipeline projects is the widespread belief that additional pipeline capacity is needed to meet the growing demand for natural gas in New York and other Northeastern markets. The U.S. Energy Information Administration forecasts that demand for natural gas will rise by 3 percent next year and about 40 percent over the next 20 years.
e-mail: drobinson@buffnews.com
Source: Buffalo News
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