A Houston-based natural gas company wants to build a pipeline that could move so-called shale gas into Georgia by late 2015.
Spectra Energy said Friday the pipeline would start at an existing interstate pipeline connection in Tennessee and then run 230 miles through parts of Alabama and Georgia, coming near Atlanta, before connecting with another pipeline in the east.
Spectra, which extracts, stores and distributes natural gas, has signed nonbinding letters of intent with companies including Atlanta-based AGL Resources to consider business opportunities with the pipeline, formally called the Rennaissance Gas Transmission Project.
AGL Resources transports natural gas from interstate pipelines to residents and businesses. Consumers in Georgia get their natural gas from one of the state’s 10 marketers, who buy it from AGL.
“Any project that increases the supply of natural gas into Georgia is potentially good for our customers,” an AGL Resources spokeswoman said.
It’s too early to tell what impact the pipeline could have on prices charged by marketers, who pay interstate pipeline charges based on their contracted market share of the pipeline. Customers would not see an effect until the pipeline is operating.
Spectra must secure contracts with marketers and utilities to ensure enough demand for natural gas before it begins seeking federal and state environmental and safety approvals, which would take at least two years.
With ample supplies and currently low costs, natural gas is increasing in use, especially as utilities such as Georgia Power prepare to close some coal-fired units to comply with environmental rules.
The development of shale gas -- natural gas formed from being trapped in fine-grained sedimentary shale rock -- is prompting new production and pipeline projects.
While many environmental groups prefer the use of natural gas over coal, the use of hydraulic fracking, in which chemicals are pumped deep underground to force out shale gas, has drawn controversy.
“Shale gas is not necessarily a clean energy solution,” said Colleen Kiernan, Georgia Sierra Club chapter director. “This development is disappointing, and we will definitely watch it as it progresses.”
AGL has two distribution subsidiaries -- Atlanta Gas Light and Chattanooga Gas -- that operate near the proposed pipeline. Those companies could agree to a contract for the rights to all or part of the pipeline in that area, for example.
Spectra is seeking contracts for the gas carried by the proposed pipeline through March 30.
Atlanta Gas Light’s last major pipeline project was finished in November 2009. The Magnolia pipeline included using part of Atlanta Gas Light’s distribution pipeline to have a firm path into metro Atlanta from Elba Island.
