Image courtesy of Williams Partners

Federal energy regulators approved a $700 million pipeline Thursday that will move gas from the Marcellus shale play to New England and New York.

The Federal Energy Regulatory Commission concluded potential environmental effects of constructing and operating the Constitution pipeline will fall to “less than significant levels” once proposed mitigation measures are implemented.

The consortium building the pipeline, led by Williams Partners and Cabot Oil & Gas, said the 124 mile long pipeline may be operational as soon as next winter.

Cabot said construction is expected to begin in the first quarter of 2015.

The Constitution pipeline will run from Pennsylvania’s Susquehanna County to Bromme, Chenango and Delaware countries in New York and connect to the Tennessee and Iroquois pipelines.

The pipeline will transport enough natural gas to serve about 3 million homes per day.

The project must still win approval from state regulators in Pennsylvania and New York as well as the U.S. Army Corps of Engineers.

Oklahoma-based Williams will operate the pipeline.

Houston-based Cabot and Southwestern Energy have inked long term supply agreements for the project.

North Carolina-based Piedmont Natural Gas Company and Washington DC-based WGL Holdings are also partners in the consortium.

“Once in service, the Constitution Pipeline will provide critical access to new, domestic sources of natural gas, bolstering supply reliability and contributing toward stabilization of the prices consumers pay for energy,” Cabot said.


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