VGS increases cost estimate for phase one of Addison Rutland natural gas project

Vermont Gas Systems (VGS) has unveiled that the first phase of its Addison Rutland natural gas project could cost up to $154m.

The company will submit a revised cost estimate to the PSB for phase one of the project, from Burlington to Middlebury.

Phase one will deliver natural gas service to residents and businesses in Vergennes, Middlebury and other Addison County communities.

VGS will urge the Vermont Public Service Board (PSB) to postpone hearings on the second phase of the project, due to start in January 2015.

The second phase is planned to provide natural gas to Cornwall, Shoreham and the International Paper plant in Ticonderoga, New York.

VGS incoming CEO Don Rendall said: "Each phase of this project provides significant economic and environmental benefit by reducing energy costs for Vermont families and businesses, and lowering greenhouse gas emissions."

Earlier in December 2014, VGS formed a partnership with NG Advantage to create a gas island in Middlebury in order to provide compressed natural gas by truck to a distribution network serving major businesses and institutions while the pipeline is under construction.

VGS is working with NG Advantage to bring the gas island concept to Rutland.

The company serves about 50,000 customers in Franklin and Chittenden counties.