The Ellisburg-to-Craigs project, with capacity of 150,000 dekatherms per day, will move natural gas from Tennessee’s 300 Line pipeline system in northern Pennsylvania to its 200 Line pipeline system in upstate New York.

Thomas Farrell II, chairman, president and CEO of Dominion, said: “Dominion Transmission’s hub-and-spoke network crisscrossing the Marcellus shale producing area provides many opportunities to help transport new natural gas supplies to market. This agreement with Tennessee for new capacity is an excellent example.”

Dominion plans to file for a FERC certificate in December. Once the project is approved, construction will begin in March 2012, with a planned in-service date of November 1, 2012.

Construction plans include additional compression facilities and a new measurement and regulating station at the Craigs interconnect with Tennessee in New York. Dominion will also add regulating facilities on its system in northern Pennsylvania.