Empire State Pipeline Moves Forward with $144 Million Empire Connector Pipeline Project.

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Empire State Pipeline Company LLC (Williamsville, New York), a subsidiary of National Fuel Gas Company (NYSE:NFG) (Williamsville, New York), has defined project scope and progressed its Empire Connector Pipeline project to the permitting stage. Empire State Pipeline presently operates a 157-mile natural gas pipeline transmission system in the state of New York. The pipeline system has been in operation since 1993 and originates at an interconnection with TransCanada near Buffalo and terminates near Syracuse.

The Empire Connector Pipeline project is one of a growing number of industrial projects under development in the state of New York, which is experiencing increased industrial project activity going into 2006. A Gap Measurement analysis comparing project spending in 2005 vs. 2006 shows a decrease in project fallout from 34.2% in 2005 to 14.8% in 2006, and an increase in project activity from 153 projects totaling $5.4 billion in 2005, up to 175 projects totaling $6 billion in 2006.

Empire State Pipeline is planning to expand its system by constructing a 78-mile, 24-inch diameter pipeline extension referred to as the Empire Connector Pipeline. The pipeline project will connect Empire’s existing pipeline facilities to an interconnection with the proposed Millennium Pipeline. The pipeline will commence in Victor, New York, and extend a distance of approximately 78 miles to Corning, New York where it will connect with the Millennium Pipeline. The pipeline will have a design capacity of approximately 250 million cubic feet per day and will operate at a maximum allowable pressure of 1,440 psig. Compression will be supplied by a single 20,620 horsepower compressor station to be constructed near Oakfield, New York. The proposed compressor station will consist of two centrifugal turbine-driven compressor units rated at approximately 10,310 horsepower each.

Empire State Pipeline hopes to complete permitting activities and select contractors in late 2006 or early 2007. Construction is expected to begin on the $144.2 million pipeline project in March of 2007 with completion slated for November 1 2007.

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