Questioning the Need for the Proposed Kinder Morgan Gas Pipeline through Dracut

Prepared by: Dracut/Tyngsboro Pipeline Awareness Group, 978-710-3618. Version of 5/29/2014. https://www.facebook.com/groups/1469440746622770

1. Kinder Morgan materials sent to the Dracut and Tyngsboro town offices in January 2014 stated that the expansion of the interstate gas pipeline system was “to meet increased demand in the US Northeast for transportation capacity for natural gas” to be “available for the winter heating season” in 2018. 2. Presentations by natural gas suppliers on May 1, 2014 at a Regional Market Trends Forum (sponsored by Natural Gas Association) show very slow growth in demand for national gas in New England. Growth = 0.6% per year or only 0.146 BCF (billion cubic feet per day) over 5 years, due to energy conservation measures in place in all six New England states, according to the presentation by Elizabeth Arangio of National Grid. Her chart shows the design capacity:

(available at: http://www.northeastgas.org/pdf/e_arangio_natgrid.pdf )

-2- 3. The Kinder Morgan pipeline proposal would add up to 2.200 BCF (billion cubic feet per day) of capacity according to company documents (see: http://www.kindermorgan.com/business/gas_pipelines/east/neupopenseason/). This is over 15 times the expected rate of growth in gas system demand. 4. On a typical cold winter day, the entire northeast uses only about 3.500 BCF (billion cubic feet per day) of natural gas, with about 3.000 BCF coming from pipelines and 0.5BCF coming from LNG (Liquefied Natural Gas), according to the chart below from the May 1, 2014 presentation of Vince Morissette of REPSOL, a supplier of LNG:

(available at: http://www.northeastgas.org/pdf/v_morrissette_2014.pdf )

-3- 5. There are four other pipeline projects under development which will serve New England. The following is taken directly from a slide presented on May 1, 2014 by Elizabeth Karanian of Northeast Utilities (last page, accessed at: http://www.northeastgas.org/pdf/e_karanian.pdf )

1) Tennessee CT Expansion (0.072 bcf) – Est. In-service Nov. 2016 2) Algonquin AIM (0.342 bcf) – Est. In-service Nov. 2016 3) Algonquin – Atlantic Bridge (up to 0.6 bcf) – Proposed Est. In-service Nov. 2017 4) Tennessee Northeast Expansion (up to 2.2 bcf) – Proposed – Est. In-service Nov. 2017/18 5) Portland – C2C Expansion (up to 0.182 bcf) – Proposed Est. In-service Nov. 2016 Add the numbers from just the three projects scheduled for 2016:

TGP Connecticut 0.072 bcf Spectra Algonquin AIM 0.342 bcf Portland Natural Gas 0.182 bcf TOTAL 0.596 Billion Cubic Feet

6. Remember: the total expected increase for five years was 0.146 Billion cubic feet, or 146 Million cubic feet per day. The pipeline capacity already under development is 0.596 Billion cubic feet per day, or 596 Million cubic feet per day. This is over THREE TIMES the increase in demand, and does not include planned increases in winter storage. 7. In the event that the Kinder Morgan pipeline is not built through Northern MA going through Dracut, our utilities can still use LNG to address winter gas supply and demand issues on “peak days.” How? On May 15, 2014 the Mass. DPU Energy Facilities Siting Board gave National Grid the green light to start manufacturing LNG in Dorchester instead of importing it. (See: http://www.env.state.ma.us/DPU_FileRoom/frmDocketSingleSP.aspx?docknum=EFSB+14-1 )

-4- 8. The Kinder Morgan proposal alone would increase regional pipeline capacity from 3 million BCF to as much as 5.2 million BCF, a 73% jump. Documents prepared for investors and prospective customers show that this proposed large increase in regional pipeline is primarily for export. Proposals to build LNG export terminals in St. John, New Brunswick and Melford and Goldboro, NS, are well known. (See graphic below, http://goo.gl/pDEFK5, and https://rbnenergy.com/movin-out-exporting-us-sourced-lng-from-the-maritimes https://rbnenergy.com/movin-out-exporting-us-sourced-gas-from-the-maritimes-part-2 ) However, many utilities that generate electricity in New England do not want all of these exports because they will increase the cost of natural gas.

9. The six New England Governors and the congressional delegation have NOT ENDORSED the Kinder Morgan proposal. The governors have endorsed an addition of 0.600 BCF of pipeline supply. That could be provided with unused capacity in the Maritimes Northeast pipeline to Dracut (0.182 BCF) and through Kinder Morgan’s “200 Line Looping” proposal on the existing pipeline Right-Of-Way through Agawam, Charlton and Hopkinton (0.500 BCF to 1.000 BCF, see Kinder Morgan document at http://goo.gl/4CQWF6, page 17).

10. New England’s governors have NOT endorsed a scheme to send billions of cubic feet of gas to a future export terminal in Eastern Canada. Such a plan would increase gas prices, say industry analysts. (see: http://goo.gl/yRNo9N )

11. Kinder Morgan has proposed to use an electric utility tariff to pay for part or all of this new pipeline. Under this scheme, a new charge would appear on all electric bills in New England, regardless of whether customers are using gas or oil to heat their homes. (see: http://goo.gl/Jv63J6 ) 12. The Kinder Morgan pipeline is now opposed by Mass Audubon, the Sierra Club, and MA Assn. of Conservation Commissions due to its route through at least 130 parcels of conservation land which is supposed to be protected indefinitely according to Article 97 of the Massachusetts Constitution. There are open legal questions as to whether Federal Law could preempt Article 97. If the Kinder Morgan plan proceeds this will be a major legal fight.

http://www.massaudubon.org/content/download/12153/193164/file/Natural%20Gas%20infrastructure%20policy%20letter%20to%20Gov.pdf

http://www.sierraclubmass.org/issues/gw/kmtpipeline.html

http://maccweb.org/documents/comment_letters/letter%20to%20Gov%20Patrick.pdf