Dominion, Tennessee Gas to move natural gas to NY

RICHMOND, Va.

Dominion Transmission and Tennessee Gas Pipeline Co. have reached a 10-year lease agreement to move Marcellus shale natural gas from northern Pennsylvania to upstate New York.

Dominion Transmission's parent, Dominion Resources Inc., announced the agreement with Houston-based Tennessee Gas Pipeline, which is owned by El Paso Corp., on Monday.

Richmond-based Dominion says the Ellisburg-to-Craigs project includes construction of additional compression facilities and new regulating facilities.

If federal regulators approve the project, construction would begin in March 2012 and operations would begin Nov. 1, 2012.

Dominion says it plans to file in December for a certificate from the Federal Energy Regulatory Commission.