Pipeline seeks permit to expand

The Maritimes and Northeast Pipeline has filed with the Federal Energy Regulatory Commission to expand its U.S. pipeline system to connect with markets in the Northeast.

The company made the announcement Tuesday.

The new project will include five additional compressor stations in Maine, about 1.7 miles of 30-inch pipeline and modifications to the existing U.S. facilities.

Construction of the proposed expansion is expected to begin next month, with an expected in-service date of Nov. 1, 2008.

In November the company held information meetings in Baileyville and other parts of the state. Information meetings had been held previously in New Brunswick.

The current Maritimes and Northeast system links natural gas fields off Sable Island, Nova Scotia, to Baileyville, Maine, and New Hampshire and connects to a network of natural gas pipes in Massachusetts.

“The proposed Maritimes Phase IV project will add facilities to transport much-needed natural gas supply from the proposed Canaport LNG import terminal in Saint John, New Brunswick, to growing markets in Atlantic Canada and the Northeastern United States,” the company said in a prepared statement. “Canaport LNG is a joint venture of Repsol YPF and Irving Oil Limited. Repsol YPF has executed an agreement with Maritimes to transport re-gasified LNG in the United State on its existing pipeline system.”

Improved service is expected.

“The Canaport LNG re-gasification terminal in Saint John offers a new reliable source of natural gas and increases energy supply diversity and security for the region. This new supply source will help minimize the impact on consumers of disruptions brought on by events like last year’s hurricanes,” Maritimes president Doug Bloom said in the same release. “We have been a full partner in developing the transportation system to link this new supply to energy-hungry markets. Canaport LNG could be the first LNG re-gasification terminal on the Atlantic coast to be constructed in decades and is a welcome development for energy consumers from New Brunswick to Maine and New Hampshire to Massachusetts.”

The regasified LNG will be transported in Canada from the Canaport LNG Terminal on the proposed Brunswick pipeline to an interconnection with the Maritimes system at the U.S.-Canada border. Emera Inc. announced earlier plans for its full ownership investment in the proposed Brunswick pipeline. An affiliate of Duke Energy will permit and construct the Brunswick pipeline.

“Demand for LNG is strong throughout the Northeast region,” Phil Ribbeck, director of LNG North America for Repsol YPF, said in the release. “The arrangement to expand Maritimes and Northeast Pipeline, along with agreements with Emera, complete the full value chain arrangements and will enable our project to be first to market with secure natural gas supplies. We are happy to be working with strong regional partners such as Irving, Maritimes and Northeast Pipeline and Emera. We have all our required permits and are moving forward with the LNG terminal construction.”

Although the new pipeline will accommodate an LNG company in Canada, three Washington County developers have made no similar announcement for pipeline space.

At present, the developers have proposed projects for Washington County – the Oklahoma-based Quoddy Bay LLC, which hopes to build a terminal at Pleasant Point; the Washington, D.C.-based Downeast LNG, which hopes to build a terminal in Robbinston; and the Washington County-based Calais LNG, which wants to construct a site in the Red Beach area of Calais.

Right now the Pleasant Point and Robbinston projects are neck and neck in the permitting process as each tries to curry favor with FERC to get its permit first.

Maritimes, with headquarters in Halifax, Nova Scotia, is owned by affiliates of Duke Energy Corp., Exxon Mobil Corp., and Emera Inc. Duke Energy, through its subsidiary M&N Management Co., will oversee the development and operation of the Maritimes pipeline. Operations centers are located in Fredericton, New Brunswick; New Glasgow, Nova Scotia; Greenland, N.H.; and Richmond, Brewer and Baileyville, Maine.

For more information, contact Maritimes at www.mnpp.com.