Constitution Natural Gas Pipeline Receives FERC Approval

Researched by Industrial Info Resources (Sugar Land, Texas)--Earlier this week, Constitution Pipeline Company (Albany, New York) announced that the U.S. Federal Energy Regulatory Commission (FERC) has approved construction of the 124-mile Constitution Natural Gas Pipeline.

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The pipeline will carry up to 650 million standard cubic feet per day of natural gas from northeastern Pennsylvania to New York and New England. The project will go a long way to helping the region avoid the natural gas shortages experienced over the past winter, which caused severe price spikes.

From January through mid-February this year, natural gas prices at the Algonquin Citygate hub, which serves Boston, reached record highs, averaging $22.53 per million British thermal units (MMBtu) due to the "polar vortex" that brought extremely cold temperatures across the nation, and the lack of infrastructure to bring natural gas into the New England region.

Constitution Pipeline Company LLC is owned by subsidiaries of Williams Partners LP (NYSE:WPZ) (Tulsa, Oklahoma), Cabot Oil & Gas Corporation (NYSE:COG) (Houston, Texas), Piedmont Natural Gas Company (NYSE:PNY) (Charlotte, North Carolina) and WGL Holdings Incorporated (NYSE:WGL) (Washington, D.C.).

The pipeline will feed into the existing Iroquois Gas Transmission System, which helps supply much of New York, and the Tennessee Gas Pipeline, which bring gas to Boston and the New England area. FERC's approval of the project should open the door for construction of the pipeline to begin early next year.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.