El Paso proposes NE USA gas storage expansion

El Paso Corp. has proposed a 6% expansion of the natural gas storage capacity in northern Pennsylvania and southern New York owned jointly with units of Dominion Resources Inc. and National Fuel Gas Co. The plan, which El Paso’s Tennessee Gas Pipeline Co. subsidiary calls the NE ConneXion Project, would also involve expansion of pipelines delivering gas to the New York City area. Tennessee Gas Pipeline is seeking comment from potential customers until the end of May. The proposed storage expansion of up to 5 billion cubic feet could provide as much as 300 million cubic feet per day of increased deliveries from the three storage areas. The project will offer access to natural gas supplies from the Gulf Coast region via the Tennessee Gas pipeline, Western Canada via Tennessee’s interconnections, and regional storage facilities, including the Stagecoach storage field currently under construction. The actual size of the project will be determined following analysis of responses from potential customers and negotiation of contracts with those responding. The entire NE ConneXion is to be completed in time for the 2003-2004 heating season. Some of the increased delivery capacity could be completed in time for next winter.