Spectra Energy and Northeast Utilities today announced plans to invest $3 billion to improve the reliability of natural gas supplies for electricity generation in New England. The Access Northeast project will include the expansion of the Algonquin and Maritimes pipeline systems, the establishment of regional storage partnerships and the addition of delivery points for local distribution companies. The new project will complement Spectra Energy’s previously announced Algonquin Incremental Market pipeline debottlenecking project and its Atlantic Bridge pipeline project.
The harsh winter of early 2014 drove up demand for natural gas heating in New England, leaving much less gas available for electricity. Consumers were forced to pay more for electricity generated by older oil and coal plants. Northeast Utilities CEO Tom May said the Access Northeast project would take a “substantial step” toward solving New England’s looming energy crisis.
“Last winter, the New England electric market reached a critical point, as lack of access to natural gas capacity cost customers dearly,” May said. “New England wholesale electricity costs were nearly double compared to the previous year, largely due to pipeline constraints. These challenges will remain the same for the next several years, and our customers will feel the effects, if we do not act.”
Spectra and Northeast Utilities are equal partners on the project. Additional investors may join in the future, the companies said.
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