Maritimes & Northeast Pipeline, L.L.C.

Maritimes & Northeast Pipeline, L.L.C.

is proposing to expand its natural gas pipeline system to transport new natural gas supplies from EnCana Corporation’s proposed Deep Panuke project to markets in Atlantic Canada and the Northeast United States. The proposed expansion, known as the Phase V Project, will continue Maritimes’ efforts to add incremental supplies from diverse sources to enhance supply reliability and security to the region.

Maritimes is proposing to install additional compression and make modifications at its existing compressor stations in Baileyville and Richmond, Maine, and at its compressor stations in Woodchopping Ridge, Brewer, Searsmont, and Eliot, Maine, that will be placed into service this year. Minor modifications are proposed at existing meter stations in Westbrook, Maine, and Dracut, Massachusetts.

In addition, Maritimes is proposing to construct and operate approximately four (4.0) miles of 36-inch diameter pipeline loop in Richmond, Maine, generally adjacent to its existing pipeline, and to integrate the uprating of the operating pressure of its mainline facilities from Baileyville to Westbrook, Maine, as approved by the U.S. Department of Transportation in 2006.

To provide information on the Phase V Project, Maritimes is holding

OPEN HOUSES

May 5, 2008
5 p.m. to 8 p.m.
Eliot Town Hall
1333 State Road
Eliot, Maine

May 6, 2008
5 p.m. to 8 p.m.
Richmond Middle/High School
132 Main Street
Richmond, Maine

May 7, 2008
5 p.m. to 8 p.m.
Brewer Auditorium
318 Wilson Street
Brewer, Maine

May 14, 2008
5 p.m. to 7:30 p.m.
Woodland Elementary School
23 Fourth Avenue
Baileyville, Maine

May 15, 2008
5 p.m. to 8 p.m.
Searsmont Community Center
37 Main Street South
Searsmont, Maine

Maritimes representatives will be available to answer questions on environmental and permitting processes, land acquisition, construction and operation, and other aspects of the Phase V Project.

The public is invited and all interested persons are encouraged to attend. For more information, contact Maritimes toll free at 1-800-738-4880.

554 U.S. Route 1, Suite 1, Freeport, ME 04032
Landowner Hotline: 800-738-4880
Telephone: 207-865-6426
Fax: 207-865-0395
Web site:
www.mnpp.com

11:41 AM 0 Comments0 KudosAdd Comment

Emera Proposes Bangor-Boston Pipeline

Corporate Connections- A Brief Introduction:

Bay of Fundy (New Brunswick, Nova Scotia) TEST TURBINE – Emera invested $15 million in OpenHydro, an Irish Company which has partnered with NSP (Nova Scotia Power) to put a test turbine in the Bay of Fundy.

Goldboro, Nova Scotia through St. John, New Brunswick  to Dracut, Mass. MARITIMES AND NORTHEAST PIPELINE – Emera, Spectra Energy Corp., ExxonMobile

St. John, New Brunswick ‘CANAPORT’ NLG (Natural Liquid Gas) TERMINAL – Irving Oil, Repsol YPF

St. John, New Brunswick to Bangor, Maine BANGOR – ST. JOHN CORRIDOR

Bangor, Maine to Boston, Mass. UNDERGROUND POWERLINE – Emera, National Grid, Spectra Energy

Calias, Maine to Coburn Gore, Maine EAST – WEST HIGHWAY – Cianbro

NORTH AMERICA’S credit crunch has forced the region’s largest energy conglomerate, Emera Inc., to look in its own backyard for growth.

Rather than borrowing money in tight markets to finance acquisitions, it wants to build new projects from scratch.

“Assets became very, very expensive through that period. . . . less and less was it possible to do acquisitions, and that caused us to re-look at our strategy,” Emera’s CEO Chris Huskilson said in a recent interview at his downtown Halifax office.

The new strategy has already borne fruit.

Earlier this year. Emera invested $15 million in OpenHydro, an Irish company which has partnered with NSP to put a test turbine in the Bay of Fundy.

And last Wednesday Emera, along with partners National Grid and Spectra Energy, presented a proposal to American regulators to build a $2-billion underground power line from a spot outside Bangor to Boston.

Emera’s share in this project would be 25 to 33 per cent, or $500 million to $700 million.

That project would link Nova Scotia to New England, giving Emera substantial control of electricity transmission throughout the region. Emera hopes it can make a buck by sending green-generated electricity from tidal or wind power to the U.S., where governments are getting fussier about the source of electricity.

And then there’s the really big project that Huskilson wants to land.

Emera is taking a hard look at whether it can tie into the Lower Churchill Falls hydro electric development.

It’s a tough deal to close, but both parties are persistent. A memorandum of understanding, signed in January with Newfoundland and Labrador Hydro, has just been extended for another two months.

“We’re in a feasibility mode with the people in Newfoundland to see whether or not their project . . . will go ahead.” He said the company is exploring three options to bring the energy to the Maritimes and New England: a subsea cable to New Brunswick, one to Nova Scotia and a direct route to the United States across the Scotian Shelf.

Construction is expected to begin in 2009.

Huskilson, a former NSP engineer-turned-executive, took over the helm of the holding company two years ago. The 51-year-old Shelburne-born executive then handed over the job of running the electrical utility to Ralph Tedesco. And Huskilson zeroed in on growing the business through Emera’s other subsidiaries.

Before launching this new strategy of building new projects with partners, Emera bought some old business — most notably Bangor Hydro.

The unregulated holding company also acquired other investments, including a 12.9 per cent interest in the Sable gas pipeline.

In 2005, Emera also teamed up with Brascan Power Inc. in a 50-50 joint venture to acquire the Bear Swamp hydro-electric generating facility northern Massachusetts for US$92 million.

In 2006, Huskilson told industry analysts he was taking the company, with assets of more than $4 billion, on a new road — toward growth in “select U.S. markets” and into Central and Western Canada.

Last winter’s purchase of a $22-million stake in St. Lucia Electric Services was as far afield as Emera ventured in its growth-through-acquistion phase.

Huskilson said the company might not be finished with the Caribbean but these days it has shifted its focus down east.

The Continental strategy has been quietly shelved in the face of rising interest rates.

“As we went through this private equity bubble we found assets got very expensive, that there’s lots of options occurring but the prices didn’t really make sense to us,” said Huskilson, who earned $1.75 million in direct compensation in 2007. “So that shifted us to greenfield developments.”

Emera’s first “greenfield” foray into building infrastructure from scratch came with the announcement in 2006 that Emera would build a $350-million gas pipeline in New Brunswick. That Brunswick Pipeline project has incurred huge cost overruns with a new pricetag of $465 million, Huskilson reported during an analysts conference call last Tuesday.

The 145-kilometre pipeline runs from Saint John to St. Stephen and is currently under construction and expected to be finished later this year for service.

During an analysts call on Tuesday, Huskilson attributed the $115-million in cost overruns to higher material and construction costs, delays in obtaining required right-of-ways, modification of construction plans, and large volumes of rock along the route.

He said the contract with the huge Spanish gas company Repsol protects Emera against such “price escalation”, and costs can be recovered in tolls levied over the lifetime of the pipeline. The long-term contract allows the pipeline to earn a return on equity of between 11 per cent and 14 per cent on 40 per cent equity.

http://thechronicleherald.ca/Business/1053759.html

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