New Shale Gas Pipeline Breaks Ground in Broome County, NY

The new Susquehanna Gathering System natural gas pipeline broke ground on Wednesday in Broome County, NY. The first phase of the pipeline is expected to be done in the next few months and will bring shale gas from northeastern PA to the Millennium Pipeline that cuts across New York State. From the official Laser Northeast press release:

Joined by landowners and local officials, Laser Northeast Gathering Company, LLC officials held a ceremonial groundbreaking today to announce the commencement of construction on the New York portion of the proposed Susquehanna Gathering System after receipt of all permits last week. The event took place at Laser’s new NY field office in Windsor, NY, just steps away from where the pipeline will connect into the Millennium pipeline interconnect.

"Laser is very excited about this project and our future doing business in Broome County, New York," stated Laser’s Chairman and CEO Thomas F. Karam. "The responsible development of this energy resource will benefit this region and the nation for decades. We are grateful for the cooperation of the many county, state and municipal officials involved in this process."

The Susquehanna Gathering System will gather natural gas from wells tapping the Marcellus Shale formation and transport it to the Millennium interstate pipeline located in Broome County, NY. The pipeline will meet or exceed all federal, state, and local laws, rules and regulations related to environmental safety, and operating issues related to natural gas gathering assets. Construction of the pipeline in Pennsylvania began the first week of February and the entire mainline project (Phase I) is expected to be complete and in service by the third quarter of this year.

Other speakers at the ceremony included Broome County Executive Pat Brennan, Laser VP of Operations Curtis Stevens and Windsor Colesville Gas Coalition Jim Worden. "This is an exciting landmark for the New York area," stated Jim Worden. "I want to thank Laser Northeast for being the kind of pipeline company we would all like in our backyard." Landowners, contractors and local vendors were in attendance to support the event.

In addition to the Phase I, Laser announced Phase II of the project with further development plans for a southwest expansion and Wyoming County expansion. The southwest expansion will consist of 9 miles of 24" pipeline from Phase I to an interconnection with the Tennessee Gas Pipeline. The Wyoming County expansion will consist of 9 miles of 16" pipeline from the Tennessee Gas Pipeline to producer acreage in Wyoming County, PA. To date, Laser has acquired 100% of the RoW for Phase II and secured a location for a compressor site.

Laser recently relocated its company headquarters to Clarks Summit, Pennsylvania. In addition to the 36 full time employees, the company expects its contractors to employ approximately 650 construction professionals during the construction phase. The company is committed to hiring local professionals and supporting the local economy.

The proposed expansions in Phase II will provide 1.4 bcf/d of pipeline capacity thus tripling the size of the original project. The estimated cost of the expansions will total 60 million dollars and employ an additional 350 construction jobs.*

*Laser Northeast Press Release (Jul 13, 2011) – Laser Northeast Gathering Company Announces Commencement of New York Construction and Further Expansion Plans