WILLIAMSVILLE, N.Y.--(BUSINESS WIRE)--
Buffalo-based National Fuel Gas Supply Corporation ("Supply") and Empire
Pipeline, Inc. ("Empire"), both wholly-owned subsidiaries of National
Fuel Gas Company ("National Fuel") (NYSE:NFG), today received notice
that the Federal Energy Regulatory Commission ("FERC") has approved
their application to construct the Northern Access 2016 Project
(“Northern Access Project” or "Project"). The Project, an expansion of
the interstate natural gas pipeline infrastructure systems of Supply and
Empire, will transport domestically-produced natural gas and provide a
reliable, low-cost source of energy for residential and commercial
customers throughout the North American pipeline system.
The Northern Access Project consists of approximately 97 miles of new
pipeline to be constructed within McKean County, Pa., and the counties
of Allegheny, Cattaraugus, Erie, N.Y., and approximately two miles of
new pipeline to be constructed in Niagara County, N.Y. The Project also
includes the addition of compression facilities at an existing
compressor station in Erie County and construction of a new compressor
station and a new dehydration facility, both in Niagara County. The
pipeline will be integrated with the existing National Fuel pipeline
network, providing for increased reliability to the Western New York
natural gas markets.
Once completed, the Northern Access Project will provide in total
490,000 Dth/day of incremental firm transportation capacity on Supply.
Of the Project capacity, 140,000 Dth/day will be delivered to the
Tennessee Gas Pipeline 200 Line, serving New York state and New England
markets, and the remaining 350,000 Dth/day of incremental firm
transportation capacity will be delivered to Empire’s pipeline system,
providing access to New York state, Canadian, Northeast and Midwest U.S.
markets.
“We continue to make progress working through the various federal, state
and local regulatory processes, and this authorization keeps us on track
for our recently announced in-service date during the second quarter of
our 2018 fiscal year. National Fuel will invest nearly a half billion
dollars to construct the facilities necessary to transport this critical
source of natural gas to the Northeast U.S. and eastern Canadian
markets,” said Ronald Kraemer, senior vice president at Supply
and president at Empire. “As the northeast becomes increasingly more
reliant on this nearby supply source, and in order to meet the growing
demand from residential and commercial customers as well as from
electric utilities that are replacing their coal-fired electric plants
with natural gas-fired generation, the infrastructure required to
provide these supplies must be built.”
The Northern Access Project will have more than a $930 million economic
impact, both direct and indirect, with approximately $735 million of the
impact taking place in New York state. A private sector investment by
National Fuel, it will be financed without government subsidies or
economic incentives. Job totals will peak during the construction phase
as the Project’s workforce is estimated at 1,680 jobs, 75 percent of
which will be in New York. The Buffalo, Niagara County and Southwestern
Building, and Construction Trades Councils recently announced an
agreement with the National Fuel subsidiaries on the use of local union
labor within New York. Pipeline construction in Pennsylvania will also
employ union labor. The Project also supports new and growing employment
at National Fuel.
Locally, the Project is estimated to increase annual property taxes
receipts for New York’s four counties by approximately $11.8 million,
with an additional one-time sales tax impact of approximately $6.6
million for those same four counties. Twelve local school districts
within those New York counties will benefit from the annual incremental
tax dollars that can be allocated towards capital or infrastructure
projects, restoring or enhancing academic programs or staffing levels.
“As a Buffalo-based company that built, owns and operates nearly 10,000
miles of pipeline in New York state, FERC's approval of the Northern
Access Project is an important next step in our ability to continue to
invest in the essential pipeline infrastructure serving New York state
and interconnected markets," said Ronald J. Tanski, president and chief
executive officer of National Fuel Gas Company. "While the state and
nation continue their transition to more renewable energy generation,
natural gas will continue to be a critical component of America’s energy
supply, economic health and national security. Equally, it’s integral to
the New York state economy, as the use of natural gas and the pipeline
infrastructure that brings gas from neighboring states not only delivers
clean, homegrown, abundant and affordable energy, but also provides
good-paying jobs and hundreds of millions of dollars in revenue for
communities. We have 740,000 utility customers that depend on us to keep
them safe and warm each winter. We want to make sure we have the
pipeline infrastructure available to meet their expectations”
During the more than 31 months of the FERC review process for this
Project, community input relative to the pipeline route, noise,
emissions, property values, lighting, security and environmental impacts
were taken into consideration and incorporated into the design of the
Northern Access Project facilities. Examples include pipeline route
modifications based on landowner requests where possible and feasible,
relocation of the proposed compressor station in Pendleton, N.Y., to an
industrially-zoned area, relocation of the proposed dehydration facility
to an existing industrial park, use of state-of-the-art sound and
emissions reduction technologies at above ground facility sites, and the
incorporation of an agricultural exterior design for the proposed
Pendleton Compressor Station to enhance the aesthetics for the facility.
National Fuel reviewed and responded to hundreds of questions and
comments submitted by residents and community groups throughout the
lengthy FERC review process, all of which are well-documented and posted
on the FERC eLibrary website, https://www.ferc.gov/docs-filing/elibrary.asp,
and on the Northern Access Project website, http://www.natfuel.com/Supply/NorthernAccess2016/default.aspx.
National Fuel is a diversified energy company headquartered in Western
New York that operates an integrated collection of natural gas and oil
assets across five business segments: Exploration and Production,
Pipeline and Storage, Gathering, Utility, and Energy Marketing.
Additional information about National Fuel is available at www.nationalfuelgas.com.
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Source: National Fuel Gas Company