A new 2.7-mile lateral connection from Tennessee Gas Pipeline�s 200 Line near Cedar Hill, N.Y., to Niagara Mohawk Power Corp.�s gas distribution system near Albany has the capacity to supply the proposed Bethlehem Energy Center power plant being developed nearby, officials said Monday.
Tennessee Gas, a unit of El Paso Energy Corp., started service on that connection on Dec. 1, providing gas from Tennessee�s system to a rapidly growing segment of Niagara Mohawk�s service area, officials said.
The new lateral provides Niagara Mohawk and area industrial end-users with a more diverse supply base through the Tennessee system and eliminates rate stacking of costs through multiple pipelines, they said.
As a result, they said, marketers could reduce transportation costs to supply those markets while maintaining more options to balance their supply and market portfolios.
El Paso Energy, Houston, is one of the world�s largest gas-to-power companies, with the largest gas pipeline system in North America.