Constitution Pipeline Receives FERC Approval to Construct Project
December 03 2014 - 8:30AM
Business Wire
Pipeline to Help Meet Growing Natural Gas
Demand in New York, New England by Winter 2015 or 2016
Constitution Pipeline Company, LLC announced today that the
Federal Energy Regulatory Commission (FERC) has issued an order
approving construction of its proposed pipeline to increase natural
gas supply to New York and New England markets, subject to certain
conditions that will ensure the protection of natural
resources.
FERC on Dec. 2, 2014 issued its certificate of public
convenience and necessity for the 124-mile Constitution Pipeline.
Assuming timely receipt of all remaining necessary regulatory
approvals, Constitution Pipeline would begin construction as early
as the first-quarter next year in order to help meet growing
natural gas demand in New York and New England by the winter of
2015 or 2016.
“We’re pleased that the FERC has approved construction on this
key piece of natural gas infrastructure to the U.S. Northeast after
a long and comprehensive review of this project,” the project
sponsors said in a joint statement. “Once in service, the
Constitution Pipeline will provide critical access to new, domestic
sources of natural gas, bolstering supply reliability and
contributing toward stabilization of the prices consumers pay for
energy.”
In New York and New England, insufficient natural gas pipeline
infrastructure last winter had the effect of exposing consumers to
high natural gas prices and, as a result, significantly higher
electric-power costs. The Constitution Pipeline is designed to
enhance New York’s natural gas supply options via an interconnect
with the existing Iroquois Pipeline. Additionally, the Constitution
Pipeline will provide New England markets with abundant, low-cost,
cleaner energy via an interconnect with the existing Tennessee Gas
Pipeline.
“Now that FERC has issued its order, we look forward to
receiving the remaining approvals we need to begin construction on
this pipeline so that we can deliver much-needed additional natural
gas supply to New York and New England as quickly as possible,” the
project sponsors said.
FERC on Oct. 24 published its final environmental review of the
proposed 124-mile Constitution Pipeline. The Environmental Impact
Statement (EIS) assessed the potential environmental effects of the
construction and operation of the project in accordance with the
requirements of the National Environmental Policy Act. The EIS
concluded that environmental impacts would be reduced to “less than
significant levels” with the implementation of proposed mitigation
measures by the company and FERC. The FERC served in a coordinating
role with relevant federal and state agencies in developing its
final EIS. The U.S. Environmental Protection Agency, the U.S. Army
Corps of Engineers, the Federal Highway Administration, and the New
York State Department of Agriculture and Markets participated as
cooperating agencies in the preparation of the EIS.
The Constitution Pipeline is designed to transport enough
natural gas each day to serve approximately 3 million homes in the
U.S. Northeast. The project involves the construction and operation
of 124 miles of 30-inch-diameter pipeline from natural gas supply
areas in northeast Pennsylvania and connecting with existing
transmission pipelines in Schoharie County, N.Y. Earlier this year,
Constitution Pipeline and Leatherstocking Gas Company, LLC
announced plans to install four delivery taps along Constitution's
proposed route to facilitate local natural gas service to homes and
businesses in southern New York and northern Pennsylvania.
Constitution Pipeline Company
Constitution Pipeline Company, LLC is owned by subsidiaries of
Williams Partners L.P. (NYSE:WPZ), Cabot Oil & Gas Corporation
(NYSE:COG), Piedmont Natural Gas Company, Inc. (NYSE:PNY), and WGL
Holdings, Inc. (NYSE:WGL). The 124-mile pipeline project is
proposed to connect domestic natural gas production in northeastern
Pennsylvania with northeastern markets by late 2015 or 2016.
Additional information about the Constitution Pipeline can be found
at www.constitutionpipeline.com.
Portions of this document may constitute “forward-looking
statements” as defined by federal law. Although the company
believes any such statements are based on reasonable assumptions,
there is no assurance that actual outcomes will not be materially
different. Any such statements are made in reliance on the “safe
harbor” protections provided under the Private Securities Reform
Act of 1995. Additional information about issues that could lead to
material changes in performance is contained in the company’s
annual reports filed with the Securities and Exchange
Commission.
For Constitution Pipeline Company, LLCMedia Contact:Chris
Stockton,
713-215-2010christopher.l.stockton@williams.comorInvestor
Contact:Sharna Reingold,
918-573-2078sharna.reingold@williams.com
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