Construction of the Empire State Pipeline in New York state will get under way possibly as early as this winter.
The action will follow approval by Canada's National Energy Board earlier this summer of an essential pipeline connection out of southern Ontario.
The 155 mile, 24 in. line has been on hold for a year following denial by NEB of TransCanada PipeLines Ltd.'s proposed link to Empire in southwestern Ontario.
DECISION REVERSED
On June 29, the NEB reversed its july 1991 decision and approved the 12.8 mile, 24 in. Blackhorse extension from the Blackhorse metering station near Thorold, Ont., to a new export point at Chippawa, Ont. There, the extension will connect with the planned Empire Pipeline in the U.S.
An additional 6,300 kw compressor unit will be built at Station 1301 near Kirkwall, Ont.
Cost of the Blackhorse extension is estimated at $39 million (Canadian). NEB cited firm gas purchase commitments of 203 MMcfd underpinning the expansion.
At the time of its denial, the board said markets for the proposed Empire project could be served by less costly, environmentally superior means through expansion of TransCanada's Niagara line connecting with U.5 carriers. But NEB "alternatives considered by the board at that time no longer appear to be viable."
The alternatives included proposals by Tennessee Gas Pipeline Co. and CNG Transmission Corp. Both were rejected by the U.S. Federal Energy Regulatory Commission, and no new ones have been forthcoming.
NEB also said Blackhorse-Empire customers as well as U.S. federal and New York state regulators and energy policy agencies have expressed their desire for an "independent, alternative source of gas supply.
"Putting one of the existing U.S. pipelines in control of part of the transportation route is not compatible with that objective," NEB said.
EMPIRE ON TRACK
ANR Pipeline Co., Detroit, co-owner of Empire, said the NEB's action was a welcome one because it provides the means for diversity of supply to the U.S. Northeast.
Other equal participants in Empire are subsidiaries of Union Energy Inc. and St. Clair Pipeline Co. Inc. St. Clair and ANR are subsidiaries of Coastal Corp., Houston. Upon receipt of regulatory approvals, Rochester (N.Y.) Gas & Electric (RG&E) could acquire a 20% interest in Empire from St. Clair.
Construction of Empire may proceed on some crossings as early as winter 1992-93 with full scale construction slated for May 1993.
Intial peak day capacity for the pipeline will be 270 MMcfd, but more will be needed by January 1995, ANR said. Decisions for meeting this anticipated increased demand have vet to be made.
Major customers on the Empire system will be RG&E and Kamine Corp.'s cogeneration plants at Carthage and Syracuse, N.Y.
RG&E will take as much as 172.5 MMcfd during the first year of service and possibly as much as 227.5 MMcfd in the second year. Kamine's Carthage plant is set to take 14.2 MMcfd, its Syracuse plant 16.3 MMcfd.
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