The US Federal Energy Regulatory Commission has authorized Dominion Transmission to build a pair of pipeline projects that would transport natural gas produced in Pennsylvania.
The two projects show that "rather than building things from scratch, we can make modifications on our existing system and help get Marcellus [Shale] gas to market," Dan Donovan, a Dominion spokesman, said Monday.
The $67.2 million Tioga Area Expansion will move 270,000 Dt/d of gas from Tioga and Potter counties to an existing interconnection with Transcontinental Gas Pipe Line and a new interconnection with Texas Eastern Transmission in Greene County. It will include 15 miles of 24-inch-diameter pipe and other facilities in Pennsylvania and New York.
Shell Energy North America has signed up for 250,000 Dt/d of firm capacity on the Tioga project and Penn Virginia Oil & Gas has signed up for the remaining 20,000 Dt/d of capacity.
FERC on Friday authorized the Tioga project as well as Dominion's proposal to use its existing firm transportation rates for the capacity. Dominion can also presume it can roll the costs of the project into the company's next rate case, FERC said.
The $16.7 million Sabinsville to Morrisville Project would include 3.56 miles of new 24-inch-diameter pipeline. It would allow Tennessee Gas Pipeline to move 92,000 Dt/d of its receipt rights from North Sheldon, New York, to an interconnection between Dominion and Tennessee near Sabinsville, Pennsylvania. The gas would continue to be delivered to a point near Morrisville, New York.
FERC approved that project as well as Dominion's request to pay for it with an incremental monthly firm reservation surcharge of $2.6869/Dt.
The agency required that Dominion start service on both projects within two years.
