Vermont Gas Pipeline

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Created on Friday, 13 February 2015 16:40
Written by Julia Rose

vermont gas finalVERMONT--- The pipeline project that would have gone from Middlebury, Vermont to Ticonderoa, New York will no longer be happening.The plan for the project known as Phase 2, was to connect the Middlebury pipeline to the International Paper Facility in Taconderoa New York, to bring natural gas under Lake Champlain.

 

The project would also have worked as a bridge to provide natural gas to Vermont customers in Rutland.

The Reason for the shut down of the project was because the International Paper Mill told Vermont Gas that they would no longer pay for the project, which ended with them terminated their financial agreement. The project had originally been estimated to be $64 million but was then increased to $105 million.

"And when we determined that that was not a mutually path forward," said CEO of VT Gas Systems Don Rendall. "Was to make the tough call and move forward which is the right thing to do."

Back in November of 2013, Vermont Gas applied for a state permit to build the pipeline for this project but had not been able to start work because of federal permits and revised cost estimates.

The decision to stop the project will also impact another pipeline project called Phase One, the pipeline that would stretched from Colchester to Middlebury. That pipeline is under construction after receiving their permit back in December 2013. International Paper was going to pay for $25 million of the $31 million.

Vermont Gas will continue to work on finding a way to bring natural gas to the Rutland area and constructing a pipeline.