By: Robert Walton
The project approved this week includes an approximately 7.8-mile pipeline loop in Orange County, N.Y.; a new compressor station in Sullivan County, N.Y., with one 22,400 HP Solar Titan 130E gas-fired turbine compressor unit; and a new 22,400 horsepower Solar Titan gas-fired turbine compressor.
Millennium is currently marketing the remaining 20,500 Dth/d of available service. Following a 2015 open season, the company executed long-term precedent agreements with nine local distribution companies or municipalities, for 202,500 Dth/d of firm transportation service — more than 90% of the total design capacity of the project. The proposed facilities are estimated to cost approximately $275 million.
Another Millennium pipeline, however, has faced opposition and is now in court. Earlier this month, FERC rejected a request by New York to block construction of the 8-mile Valley Lateral Pipeline, which aimed to move shale gas from the existing Millennium Pipeline to the 680 MW Valley Energy Center in Orange County, N.Y.
The federal agency previously ruled the state had waited too long to reject a water quality certificate Millennium had requested. Next month, the U.S. Court of Appeals for the Second Circuit will hear arguments over the lateral. The court previously approved a temporary stay of construction.
On another front, North Carolina officials continue to perform due diligence, pressing Atlantic Coast Pipeline developers for more information. Analysts told SEN that the inquiries were not out of the ordinary. Last month, state regulators asked FERC to reconsider the return on equity it granted to the pipeline project in its October approval.