Spectra Energy nears completion of natural gas pipeline project in New England

Published on December 08, 2016 by Daily Energy Insider Reports

Spectra Energy Corp. is nearing completion of its $972 million Algonquin Incremental Market (AIM) pipeline project, which will transport natural gas to the New England region in time for an anticipated increase in winter demand.

The AIM project is the largest pipeline project since 2007 to transport natural gas into New England from outside the region, according to the U.S. Energy Information Administration. The pipeline will provide an extra 342 million cubic feet per day of pipeline capacity to the New England market from the Appalachian Basin.

Spectra placed part of the AIM project into service in November following the October approval from the Federal Energy Regulatory Commission.

Another project from Spectra, the $63 million Salem Lateral project, was placed into service on Nov. 1, but is not expected to be used until June 2017. It will provide capacity for the Salem Harbor Power Plant, an electric power plant that was converted from coal to gas. Once completed, 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.

The AIM project will add capacity to a tight New England pipeline infrastructure system ahead of a spike in demand during winter and before an expected increase in demand from the Salem Lateral project. The pipeline projects will be the first for the New England region since 2010.

The increase in pipeline capacity is expected to continue offsetting decreasing natural gas imports into New England.