National Grid needs to expand its network of high-pressure natural gas pipelines through Lancashire and North Yorkshire.
The new pipeline will be one of four which will be linked to carry gas from a new import terminal at Easington, north of the Humber, across to the North West.
The first of these sections, Ganstead to Asselby, was completed in mid 2006. Construction of the final two stages, Easington to Ganstead and Asselby to Pannal, are not due to begin until early 2008.
The Pannal to Nether Kellet pipeline will be 1,220mm (48") in diameter and will run for 94Km , between National Grid's above-ground installations at Pannal in North Yorkshire and Nether Kellet in Lancashire.