FERC solicits views on pipeline Expansion would be necessary if either of the proposed LNG facilities in Washington County is approved

The Federal Energy Regulatory Commission is seeking public comment on the environmental impact of a potential expansion of the Maritimes & Northeast Pipeline system, which would be necessary if either of the proposed liquefied natural gas facilities in Washington County is approved.

FERC has issued two requests: one for the Oklahoma-based Quoddy Bay LLC, the other for the Washington, D.C.-based Downeast LNG.

Quoddy Bay hopes to build an onshore import terminal at Split Rock on the Pleasant Point Passamaquoddy Reservation, a storage facility in Perry and a natural gas export pipeline 35.8 miles long and 36 inches in diameter. The Quoddy Bay pipeline would transport a maximum of 2 billion cubic feet of natural gas per day from the LNG terminal to Maritimes & Northeast’s existing pipeline near Princeton.

Downeast LNG wants to build an onshore import and storage terminal in Mill Cove in Robbinston and a natural gas export line 31 miles long and up to 30 inches in diameter. The Downeast line would transport a maximum of 625 million cubic feet of natural gas per day from the LNG terminal to the Maritimes & Northeast pipeline near Baileyville.

The existing Maritimes & Northeast pipeline ranges from 24 to 30 inches in diameter and is about 800 miles long. It runs from Sable Island, Nova Scotia, to Baileyville, Maine, and on through New Hampshire before connecting to a network of natural gas pipes in Massachusetts. Maritimes & Northeast has said its pipeline is not large enough to accommodate either proposed LNG project, let alone both. If either project is approved and put in service, the pipeline will have to be modified or expanded in Maine, New Hampshire and Massachusetts.

Upon the request of Downeast LNG and Quoddy Bay LNG, Maritimes & Northeast has put forth an analysis that recommends facilities based on the volume of natural gas each LNG terminal expects to produce, said Marylee Hanley, spokeswoman for Maritimes & Northeast.

“No precedent agreement has been signed with either LNG company,” Hanley said.

Maritimes & Northeast has suggested a combination of increased compression, or pressure, and additional piping to send more gas through the pipeline. The new piping would loop from one section of the existing pipe to another section.

Each project would require its own loop system. The Downeast project would require several loops totaling 130.9 miles of 36-inch-diameter piping running along the existing Maritimes & Northeast pipeline. The Quoddy Bay project would require a series of longer loops of 36-inch- diameter pipes connected at compressor stations along the length of the existing pipeline in Maine and into Massachusetts, a total of 297.2 miles.

Both expansion projects also would require additional turbines in existing compressor stations. The Downeast project would also need a new compressor station built in Methuen, Mass.

The cost of any expansion would be negotiated between Maritimes & Northeast and the LNG companies. Maritimes & Northeast is a subsidiary of Charlotte, N.C.-based Duke Energy.

Jim Dusch, director of policy services for the Maine Department of Environmental Protection, said that by following the existing pipeline, the loop systems of new pipes should have a minimal environmental impact.

“There is already an existing corridor, so … the impacts for the most part have already occurred,” Dusch said. “Because the pipeline is buried, it’s not a lasting effect. When they’re digging up, they have to be careful.”

Unrelated to the proposed LNG facilities in Washington County, Maritimes & Northeast is presently constructing five new compressor stations in Woodchopping Ridge in Hancock County, Eliot, Westbrook, Searsmont and Brewer.

Maritimes & Northeast is installing 1.7 miles of 30-inch-diameter pipeline loop adjacent to Maritimes & Northeast’s existing right of way from the Canadian border to the Baileyville, Maine, compressor station. It is also upgrading existing compressor stations in Baileyville, Westbrook and Richmond, Maine, and Dracut, Mass. These changes are being made to accommodate the Canaport LNG terminal in St. John, New Brunswick. Canaport LNG, which is owned by Irving Oil and Madrid-based Repsol YPF, is expected to be operational in late 2008.

FERC requests that public comments on the potential pipeline expansion related to the proposed Washington County LNG facilities be filed by Jan. 5, 2007. FERC urges people to submit comments electronically, by visiting the FERC Web site at www.ferc.gov and following directions under the e-filing link. Those who want to send comments by mail may send a letter and two copies to: Magalie R. Salas, Secretary, Federal Energy Regulatory Commission, 888 First St., NE, Room 1A, Washington, D.C. 20426.