- Associated Press - Sunday, February 15, 2015

MONTPELIER, Vt. (AP) - Vermont’s oil heat industry is questioning whether a proposed gas pipeline expansion makes economic sense, now that part of it has been cancelled.

The comments from the Vermont Fuel Dealers Association follow an announcement from Vermont Gas Systems this past week that it was cancelling Phase 2 of a proposed gas pipeline expansion, running from Middlebury to the International Paper plant in Ticonderoga, N.Y.

In its weekly newsletter, the Vermont Fuel Dealers Association says rising construction costs for the gas pipeline project are likely to erase the price advantage that natural gas has maintained over oil as a heating fuel.

Gov. Peter Shumlin says he continues to support construction of the pipeline from Chittenden County south to Middlebury, and hopes to see it eventually expanded to Rutland.

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