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December 28, 2013

Pipeline planners say delay is possible


Anne Marie Garti of East Meredith, one of the founders of Stop the Pipeline, said her group has argued for months that there is no way the developers could achieve the March 2015 in-service date given the significant environmental questions surrounding the project.

She also argued the project developers have been misleading the public by contending the aim of the Constitution Pipeline is to send natural gas to the New England and metropolitan New York City regions.

“If Cabot can earn four times more by exporting the gas, they are not going to sell it in the U.S.,” Garti said.

Cabot, in the same announcement where it acknowledged the pipeline completion could face delays, also discussed its plan to supply LNG to Japanese consumers after executing a gas sale agreement with Pacific Summit Energy LLC, a wholly owned subsidiary of Sumitomo Corp.

“We are extremely excited to be partnering with Sumitomo to provide a long-term source of natural gas to the Cove Point LNG facility and ultimately to the people of Japan,” Dan O. Dinges, Cabot’s president and chairman said in a statement.

Asked whether Donges’ statement could suggest that the gas carried by the Constitution Pipeline could also be destined for international export, Stockton said the Cabot plans involving the Cove Point plant in Maryland “are totally independent of the Constitution Pipeline.”

“As we’ve stated before, the gas transported by Constitution Pipeline will be delivered to customers served by the Iroquois and Tennessee Gas Pipeline systems,” Stockton said. “There are no natural gas LNG export terminals in this region.”

The Donges statement also noted Cabot has reached a new gross production record in the Marcellus shale region of 1.5 billion cubic feet (Bcf) per day — a level he said represents a 50 percent increase in just a year.

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