Enbridge proposes Algonquin gas line expansion

Canadian midstream giant Enbridge has proposed a major expansion to its Algonquin Gas Transmission (AGT) natural gas pipeline, one of a handful of major interstate lines delivering gas into New England.

The expansion project, named Project Maple, would boost capacity on AGT by replacing the existing pipeline with larger-diameter pipe, extending pipeline loops and adding compression.

Enbridge expects Project Maple to increase capacity by 720mn cf/d (20mn m3/d). If completed, this would increase AGT's total flow to 3.81 Bcf/d. The company's target in-service date is November 2029.

Project Maple would boost capacity at the west and east ends of its pipeline. On the west end, the project would boost capacity by up to 480mn cf/d at the Ramapo, New York, receipt point interconnect with DT Midstream's Millennium pipeline. On the east end, it would boost capacity by 240mn cf/d at the Salem, Massachusetts, receipt point interconnect with Enbridge's Maritimes and Northeast pipeline.

Enbridge announced an open season to determine prospective shippers' needs for additional pipeline capacity. The open season is effective through 17 November.

Because AGT is an interstate pipeline, the expansion project would require approval from the US Federal Energy Regulatory Commission. That said, "brownfield" expansion projects generally do not require state water permits. These permits are often the downfall of "greenfield" gas projects in the northeast, where state regulators do not issue the permits for new gas lines so easily.

Most of the construction would take place in or adjacent to existing rights-of-way, reducing the opportunity for organized opposition to block the project. Aside from the Mountain Valley pipeline, which prevailed over local opposition only by congressional intervention, developers generally do not view the northeastern US as a viable region to site new interstate pipelines. Local landowners and environmental groups have been largely successfully in blocking new pipeline projects in the region, despite New England being a pipeline-constrained region prone to price spikes when demand is high.

The November price for Algonquin Citygates, a key indicator of New England gas prices, was $3.82/mmBtu on Thursday, while the January price was $14.65/mmBtu, according to Argus forward curves.

AGT connects with Enbridge's Tetco pipeline at the New Jersey-Pennsylvania border, delivering supplies from the Marcellus shale in Pennsylvania and the surrounding states through New Jersey, New York, Connecticut, Rhode Island and Massachusetts, where it ends at the Maritimes and Northeast interconnect.

By Julian Hast