Northeast Utilities has signed a deal with a Shelton natural gas transmission company to increase natural gas access for NU’s planned $3 billion pipeline expansion.
NU and its partner in the pipeline expansion, Spectra Energy of Houston, formed the alliance with Iroquois Gas Transmission System of Shelton to make sure the pipeline would have enough access to natural gas to meet the growing demand in New England.
NU announced the $3 billion pipeline expansion in September, in order to meet the natural gas demand in the region for both home heating and power generation. The commodity cost of natural gas is significantly lower than other heating/generation fuels, but limited pipeline access to New England constricts the amount of natural gas that can be brought into the region, especially in winter.
The deal with Iroquois gives NU and Spectra access to the 416 miles of Iroquois pipeline that reach natural gas deposits and storage in the U.S. and Canada.
