Phase I of Iroquois Gas Transmission System LP's 08/09 Expansion -- a 1.6-mile pipeline loop in Newtown, CT -- began flowing gas on Nov. 14. The three-phase 08/09 Expansion will allow Iroquois to receive an additional 200 MMcf/d at its interconnect with Algonquin Pipeline in Brookfield, CT, and deliver the volumes to National Grid's KeySpan system at South Commack in Long Island. Iroquois will act as a middleman between Algonquin and KeySpan. Algonquin has entered into a precedent agreement with KeySpan for 175,000 Dth/d of firm service effective Nov. 1 and an additional 25,000 Dth/d commencing Nov. 1, 2009. Because pressure in the Iroquois mainline prior to the expansion was substantially higher than the pressure in the Algonquin pipeline at Brookfield, Iroquois was able to only deliver gas into, but not receive gas from, the Algonquin system. The proposed expansion will allow Iroquois to receive gas from Algonquin. Phase II of the expansion, which entails installation of two 10,300 hp compressors in Milford, CT, is under way with a targeted in-service date of Jan. 1. The third phase, installation of a second 10,300 hp compressor at Iroquois' existing Brookfield Compressor Station in Brookfield, CT, is expected to begin by year's end.