Northeast Supply Diversification

Tennessee Gas Pipeline Company’s Northeast Supply Diversification Project is now complete. Placed into service on Nov. 1, 2012, Tennessee’s NSD project added 250,000 dekatherms per day of incremental firm transportation capacity on the pipeline’s 300 Line system which moves product from the developing Marcellus Shale region to markets in New England and the Niagara Falls area of New York.

The company expanded its incremental firm transportation service through a combination of pipeline looping, compressor station modifications, and the use of existing and off-system capacity. The project involved the installation of approximately 7 miles of 30-inch diameter pipeline looping located in Bradford and Tioga counties, Pennsylvania west of Tennessee’s Station 317, compressor station and other facility modifications located in Niagara and Erie counties, New York along its jointly owned Niagara Spur lateral, and the utilization of existing and third party pipeline capacity.

Tennessee executed binding, 15-year term agreements with Cabot Oil & Gas Corporation, Anadarko Energy Services Company, a subsidiary of Anadarko Petroleum Corporation, and Seneca Resources Corporation, a subsidiary of National Fuel Gas Company, for up to 250,000 dekatherms per day of incremental firm transportation capacity.

To accommodate shippers’ requested transportation paths from Marcellus to New England and at Niagara Falls, Tennessee combined its original NSD Project, which provided transportation to New England, with its MLN Project, which provided transport to Niagara Falls.

Tennessee has served the northeastern United States for more than 50 years. The success of this Project will continue to build upon Tennessee’s long tradition of providing safe and reliable energy service to the region. The Project will support Tennessee’s commitment to serve growing markets and to provide access to a diverse portfolio of natural gas supplies.