National Fuel Gas Plans to Build $700 Million Pipeline in the Northeast

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Researched by Industrial Info Resources (Sugar Land, Texas)--National Fuel Gas Supply Corporation (Williamsville, New York), a subsidiary of National Fuel Gas Company (NYSE:NFG) (Williamsville), is planning to construct a 324-mile natural gas pipeline. The proposed West to East Pipeline Project would originate near Clarington, Ohio, and then run eastward to the Corning, New York, area.

The new 36-inch-diameter pipeline will have a natural gas transmission capacity of approximately 1 billion cubic feet per day (Bcf/d). Studies are being conducted to determine the amount of compression that will be needed to support the 1 Bcf/d throughput of the pipeline.

National Fuel Gas has awarded the routing study contract to EN Engineering of Woodridge, Illinois. The pipeline will traverse parts of Ohio, Pennsylvania and New York. The proposed pipeline scheme is designed to capitalize on the growing demand for natural gas along the East Coast and will source its supplies from the growing production volumes in the Rocky Mountain region. The supply point near Clarington would be an interconnection with the Rockies Express Pipeline, owned by Kinder Morgan and currently under construction. The $700 million West to East Project will be the largest capital project in the history of National Fuel Gas Company.

Natural Fuel Gas expects to file the West to East Project with the Federal Energy Regulatory Commission in early 2009. Construction on the pipeline could begin as early as June 2010 with a completion and start-up date targeted for the fourth quarter of 2011.

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