By the OGJ Online Staff
HOUSTON, Aug. 5 -- TransCanada PipeLines Ltd., Calgary, and National Fuel Gas Co., Buffalo, NY, said Wednesday they will proceed with development of the Northwinds natural gas pipeline project to supply the US Northeast.
The 215-mile, 30-in. line would extend from Kirkwall, Ont., to Buffalo, and then follow a southerly route to the Ellisburg-Leidy area of Pennsylvania. The 500 MMcfd line would cost up to $400 million.
The companies said the final route has not been selected but it would use existing utility corridors to the greatest extent possible.
"It is expected that the project design will also include construction of a tunnel to achieve the border crossing from Canada into the US," they said.
Bernard Kennedy, National Fuel chairman and CEO, said, "Our existing systems are located at the Canada-US border and provide the path for new gas supplies to reach markets in western New York, northwestern Pennsylvania and beyond."
The companies said Northwinds will allow US markets to draw from growing gas supplies at the market hub in Dawn, Ont. They said more than 3.5 bcfd of pipeline capacity and more than 870 bcf of storage capacity are fed into that hub.
Northwinds, through interconnections along the pipeline route and in the Ellisburg-Leidy area (a major gas market hub for the East Coast), will have access to more than 5 bcfd of transportation capacity on interstate lines that supply major East Coast markets.
TransCanada and National Fuel plan an open season this fall for transportation service on the pipeline. Contingent upon the results of that offering, the companies would apply with the US Federal Energy Regulatory Commission later this year and with the Canadian National Energy Board in the spring.
Hal Kvisle, TransCanada's CEO, said, "Northwinds pipeline is tailored to meet the needs of the Mid-Atlantic and New England markets, which are among the fastest growing markets on the continent. This project will strongly enhance TransCanada's existing and proposed natural gas transportation systems, from the Western Canada Sedimentary Basin to eastern Canada to the northeastern US."
Construction will take up to 20 months. Completion is targeted for late 2004, but will be determined once the regulatory review process is underway.