NEB CITES REASON FOR BLACKHORSE REJECTION

Canada's National Energy Board says it rejected the proposed Blackhorse pipeline project by TransCanada PipeLines Ltd. because an existing line can handle shipments. NEB earlier declined to approve the planned $42.3 million, 13 mile line designed to connect TransCanada's Kirkwall Line in Ontario with the proposed Empire State Pipeline in New York State (OGJ, July 22, p. 25). The board traditionally acts on an application, then later discloses its reason.

Aug. 5, 1991

2 min read

Canada's National Energy Board says it rejected the proposed Blackhorse pipeline project by TransCanada PipeLines Ltd. because an existing line can handle shipments.

NEB earlier declined to approve the planned $42.3 million, 13 mile line designed to connect TransCanada's Kirkwall Line in Ontario with the proposed Empire State Pipeline in New York State (OGJ, July 22, p. 25). The board traditionally acts on an application, then later discloses its reason.

NEB said the markets proposed to be served by the Blackhorse extension can be served by less costly and environmentally superior means in a timely fashion through expansion of TransCanada's existing pipeline.

TransCanada said it plans to study reasons for the decision and hold further talks with its U.S. customer on other ways to deliver the gas.

The extension was planned to move as much as 181.8 MMcfd of gas to markets in Upstate New York. Rochester Gas & Electric Corp. was one of the major customers to be served.

U.S. authorities approved the pipeline connection to the Empire State system in which Coastal Corp., Houston, is a major partner.

The connector line was to have moved imported gas from western Canada and from storage sites in Michigan.