The first new pipelines in seven years bring additional capacity
NEW ENGLAND—Spectra Energy Corp. says two new natural gas pipelines—the first in New England since 2010—are critical to bringing new supplies of natural gas to the underserved region.
Most of the Algonquin Incremental Market project was approved by the Federal Energy Regulatory Commission last October and went into service in November. The Salem Lateral Project also was approved but is not expected to be used until June, according to information from Spectra Energy.
“The AIM Project is a critical first step to bringing new supplies of clean-burning and affordable natural gas to the region. Our team has been working for several years to bring additional natural gas capacity to the Northeast and specifically New England,” Spectra spokesperson Marylee Hanley told American Gas. “We are very pleased to place such a substantial amount of capacity online in time for the winter heating season.”
The AIM project will also provide for increased demand from the $63 million Salem Lateral Project, which will supply natural gas to Footprint Power’s Salem Harbor Power Plant for producing electricity. The plant is being converted from coal to natural gas and is scheduled to go into service in June. The 674-megawatt power plant will use up to 115 million cubic feet per day of natural gas to generate electricity for New England consumers.
“Algonquin looks forward to delivering affordable supplies of clean-burning natural gas directly to Footprint Power’s Salem Harbor Station and helping to produce a new, efficient source of electricity that will power New England homes and businesses,” Hanley said.
The $972 million AIM project is the largest pipeline project to bring natural gas from the Appalachian Basin into New England since 2007, according to Spectra Energy. It will provide an additional 342 Mmcf/d to the New England market.
Natural gas pipelines reaching New England have sometimes reached capacity over the past few years, especially during particularly cold winters. The constraints have contributed to volatile price fluctuations in some spots.
The Algonquin pipeline project is using its existing crossings of the Hudson River until new construction is completed and authorized for service by FERC.