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Vermont Gas Will Not Pursue 2nd Phase Of Pipeline

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Vermont Gas

Vermont Gas Systems will not go through with the second phase of a natural gas pipeline that would have extended underneath Lake Champlain to International Paper in Ticonderoga, New York.

International Paper spokesperson Donna Wadsworth says cost increases led them to terminate their contract.
“We were notified by Vermont Gas just recently of a significant cost increase and also some uncertainty about the timeline for delivery. Given the significant cost increase we made the decision to terminate participation in the project.”

Last year, Vermont Gas announced two cost increases, prompting the Vermont Public Service Board to investigate further. The board recently asked for an updated cost estimate for phase two.

The first phase of the pipeline is designed to reach Vergennes, Middlebury and other communities.
The cost estimate for phase two has grown to $105 million, up from an earlier estimate of $74 million.

The Associated Press contributed to this report. Copyright 2015 . All rights reserved.

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