By the OGJ Online Staff
HOUSTON, Jan. 7 -- The US Federal Energy Regulatory Commission (FERC) has given Islander East Pipeline Co. LLC a positive preliminary determination to build, own, and operate 50 miles of gas pipeline in Connecticut and on Long Island, NY.
FERC also approved a companion application by Algonquin Gas Transmission Co. to increase throughput for more than 13 miles of existing pipeline and build a new compressor station in Cheshire, Conn.
Islander East is equally owned by subsidiaries of KeySpan Corp. and Duke Energy Corp. The project is expected to provide 260,000 decatherms/day of gas, which is enough supply 600,000 homes. The 24-in. pipeline is expected to be in service by 2003.
In the preliminary determination, FERC said the Islander East and Algonquin proposals are in the public convenience and necessity because they will serve expected market growth. FERC also said the Islander East project would increase the reliability and flexibility of the interstate pipeline grid.
Final approvals and construction certificates are dependent on a favorable environmental review. FERC staff will be studying the environmental impacts of the project and issuing a draft environmental impact statement in the near future.
Islander East will extend from Connecticut across Long Island Sound to Wading River, NY, with proposed connections to KeySpan's Long Island delivery system. Algonquin is proposing upgrades for 13.7 miles of existing parallel lines in Connecticut, plus the new Cheshire compressor station.