Phase 1 of Addison pipeline will cost US$ 35.6 million more than expected

Strong demand for natural gas that is driving a nationwide surge in the cost of both construction labor and materials, local engineering and route changes to accommodate residents and other stakeholders, plus enhanced project oversight have resulted in a US$ 35.6 million increase in the estimated investment to build Phase 1 of the Addison Rutland natural gas project.

When compared to the propane or oil currently used by most Vermonters, natural gas is still about half the cost and continues to be a safer, cleaner choice that will help keep and create more good local jobs and improve the environment.

Since the budget for the Addison Rutland natural gas project was originally filed in early 2013, the growth in demand for pipeline construction is the most significant reason for the updated investment of US$ 121.6 million.

Vermont Gas also has made a number of engineering changes to address comments by residents and other stakeholders about environmental and cultural sensitivities, including modifications required by the Certificate of Public Good granted by the Vermont Public Service Board in December 2013. In addition, the South Burlington-based natural gas utility has made numerous route adjustments off public land and design alterations that were requested by communities and landowners.

Vermont Gas has increased its oversight, adding project and construction managers, as well as construction inspectors, to make the project better.

“Compared to the propane and oil that most Vermonters use today, natural gas continues to be a much more affordable, safer and cleaner choice with the potential to bring as much as US$ 200 million in direct energy savings to Addison County,” said Eileen Simollardes, Vice President and Director of the Addison Rutland natural gas project for Vermont Gas. “The project also provides new opportunities to increase energy efficiency, reduce greenhouse gas emissions, and bring us a step closer to providing natural gas service to Rutland by 2020.”

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/business-news/03072014/phase_1_of_addison_pipeline_will_cost_us_356_million_more_than_expected_596/