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NJ Residents Unhappy with Pipeline’s Power of Eminent Domain

This is a cautionary story. You know that MDN is pro- but safe drilling. You may also know that MDN does not think, in general, that pipeline companies should be granted status as public utilities with the right of eminent domain—the right to condemn and take land for its own use in constructing a pipeline. But pipelines are a complex issue. Should large, interstate pipelines be granted public utility status? Perhaps. They are similar to large electric lines running through a state. But what about smaller, gathering pipelines? Should they have the right to cross any property they want? MDN says no.

Read More “NJ Residents Unhappy with Pipeline’s Power of Eminent Domain”

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Tennessee Gas Pipeline from PA to NJ Clears Major Hurdle

The Tennessee Gas Pipeline Northeast Upgrade Project (previously reported on here), also known as the 300 Line Project, has just cleared a major hurdle on its way to becoming reality. The Federal Energy Regulatory Commission (FERC) has completed an environmental assessment of the proposed project and has found there will be no major impact to the environment from the proposed pipeline.

The 300 Line Project involves the installation of seven looping segments in Pennsylvania and New Jersey totaling approximately 128 miles of 30-inch pipeline, and the addition of approximately 55,000 horsepower following the installation of two new compressor stations and upgrades at seven existing compressor stations. The new stations will be built in northwestern Pennsylvania.*

Construction is set to begin in the later half of 2010, and the pipeline will come online by the end of 2011.

*Wayne Independent (Mar 1) – Gas pipeline project clears review

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Tennessee Gas Pipeline to Invest $400 Million in New Pipeline from PA to NJ

El Paso Press Release (Feb 16)
El Paso Corporation Announces Northeast Upgrade Project

Part of the development required to tap the huge natural gas reserves in the Marcellus includes the infrastructure to get the gas from well to market. El Paso Corporation’s subsidiary Tennessee Gas Pipeline is helping provide the pipeline piece of the puzzle.

Below is the full text of a press release from El Paso, dated Feb. 16:

HOUSTON, TX, — El Paso Corporation (NYSE: EP) today announced that its wholly owned subsidiary, Tennessee Gas Pipeline Company (TGP), has executed binding, 20-year term agreements with Chesapeake Energy Marketing, Inc., a wholly owned subsidiary of Chesapeake Energy Corporation (NYSE: CHK), and StatOil Natural Gas LLC, a wholly owned subsidiary of Statoil (NYSE: STO), for 100 percent of the capacity for its Northeast Upgrade Project. The project will provide 636,000 dekatherms per day of incremental firm transportation capacity from TGP’s 300 Line in Pennsylvania to an interconnect in New Jersey to serve growing markets in the Northeast.

The Northeast Upgrade Project is a natural extension of TGP’s presence in the heart of the developing Marcellus Shale play. The project would cost approximately $400 million with a majority of the capital spending taking place during 2013.

"We are very pleased to add another major pipeline project that provides significant new firm transportation capacity for two prominent Marcellus Shale producers," said Doug Foshee, El Paso’s chairman, president, and chief executive officer. "With the previously announced 300 Line Project, we will be adding approximately 1 billion cubic feet per day of new firm capacity that will provide safe and reliable transportation of clean-burning, domestic natural gas supplies to key Northeast markets."

"We are pleased to enter into this agreement with El Paso," said Aubrey McClendon, Chesapeake’s chief executive officer. "It continues our practice of contracting for strategic pipeline capacity, which in this case provides access to premium northeast markets for our growing Marcellus production in Northeast Pennsylvania. We have a long history of transactions with the El Paso family of companies, and this transaction continues that tradition, creating substantial value to both firms."

A spring 2011 Federal Energy Regulatory Commission filing date is anticipated with a scheduled November 1, 2013 in-service date. An open season is expected to begin this month with final capacity awarded in March 2010.

El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America’s largest interstate natural gas pipeline system and one of North America’s largest independent natural gas producers. For more information, visit www.elpaso.com.