Dueling Studies Dispute Need for More Pipelines in New England
Two studies released last week came to opposite conclusions on the need for additional natural gas pipeline capacity in New England.
The results were unsurprising: One study was funded by domestic natural gas producers; the other by a liquefied natural gas importer.
One report, funded by GDF SUEZ Energy North America, which operates an LNG import terminal in Everett, Mass., concluded that the region has adequate pipeline capacity to meet winter power demand, especially if contributions from dual-fuel-capable generation and LNG are expanded.
The report, written by international consultant Energyzt Advisors, is highly critical of the proposal embraced by several New England governors to help fund added natural gas infrastructure with a tariff assessed on electricity ratepayers. (See New England Governors Revise Energy Strategy.)
“The proposed electricity ratepayer funding of additional gas pipeline capacity is an expensive and dangerous proposition in terms of ratepayer cost and healthy market function in New England,” the report says.