The company plans to build the pipeline called Northeast Energy Direct Project (NED) to carry natural gas from the Marcellus region of Pennsylvania to markets in the Northeast.
The project has two components which include ‘Supply Path’ component and ‘Market Path’ component with a maximum design capacity of 1.2 billion cubic feet per day (Bcf/d).
The 133-mile supply path pipeline will span from Tennessee Gas Pipeline’s existing 300 Line system in northern Pennsylvania to an interconnection with TGP’s 200 Line system and Iroquois Gas Transmission System at Wright, New York.
The market path part will be a 188 miles line from Wright to a transmission hub in Dracut, north of Lowell.
It will also include 41 miles of 36-inch diameter looping pipeline along its 300 Line in Bradford and Susquehanna counties in Pennsylvania.
Kinder Morgan East Region Natural Gas Pipelines president Kimberly S. Watson said: "Despite being just a few hundred miles from the most abundant and low-cost natural gas production area in the country, consumers in the Northeast pay some of the highest natural gas and electricity rates in the continental United States.
"These higher prices are due, in large part, to natural gas pipeline infrastructure that is insufficient to meet the winter heating demand of local distribution companies (LDCs) and electric generators."
The Market Path component also involves construction of and operation of six new compressor stations and 27 new and modified meter and regulator stations.
Earlier in July, the company had approved a plan to proceed with Market Path component and invest about $3.3bn in the project while the capital plan for Supply Path is yet to be decided.
Watson said: "In order to meet demand during the past two winters, New England’s electric generators have had to rely on high-priced natural gas, expensive imported LNG and costly fuel oil purchased on the spot market. In short, New England has insufficient natural gas pipeline capacity serving the region.
"Adding the NED Project capacity to transport incremental natural gas supplies will ease natural gas capacity constraints and stands to provide significant benefits to energy consumers in the region in the form of lower natural gas and electricity prices in coming years."
The company plans to start certain construction activities in January 2017 following receipt of approval and bring the project on stream in November 2018.
Image: The 188-mile Northeast Energy Direct Project will start from Tennessee Gas Pipeline’s existing 300 Line system in northern Pennsylvania. Photo courtesy of © Kinder Morgan 2015.
