[EXHIBIT 10p TO COLONIAL GAS COMPANY
                    FORM 10-K FOR YEAR ENDING 12/31/93]

                                                       93003E

                        SERVICE AGREEMENT
               (APPLICABLE TO RATE SCHEDULE AFT-E)
                                
                                
     This Agreement ("Agreement") is made and entered into this
     1st day of June, 1993, by and between Algonquin Gas
     Transmission Company, a Delaware Corporation (herein called
     "Algonquin"), and Colonial Gas Company (herein called
     "Customer" whether one or more persons).
     
     In consideration of the premises and of the mutual covenants
     herein contained, the parties do agree as follows:
     
     
                            ARTICLE I
                       SCOPE OF AGREEMENT
                                
     1.1  Subject to the terms, conditions and limitations hereof
          and of Algonquin's Rate Schedule AFT-E, Algonquin
          agrees to receive from or for the account of Customer
          for transportation on a firm basis quantities of
          natural gas tendered by Customer on any day at the
          Point(s) of Receipt; provided, however, Customer shall
          not tender without the prior consent of Algonquin, at
          any Point of Receipt on any day a quantity of natural
          gas in excess of the applicable Maximum Daily Receipt
          Obligation for such Point of Receipt plus the
          applicable Fuel Reimbursement Quantity; and provided
          further that Customer shall not tender at all Point(s)
          of Receipt on any day or in any year a cumulative
          quantity of natural gas, without the prior consent of
          Algonquin, in excess of the following quantities of
          natural gas plus the applicable Fuel Reimbursement
          Quantities:
     
     
          Maximum Daily Transportation Quantity      11,577 MMBtu
          Maximum Annual Transportation Quantity  3,125,790 MMBtu


     1.2  Algonquin agrees to transport and deliver to or for the
          account of Customer at the Point(s) of Delivery and
          Customer agrees to accept or cause acceptance of
          delivery of the quantity received by Algonquin on any
          day, less the Fuel Reimbursement Quantities; provided,
          however, Algonquin shall not be obligated to deliver at
          any Point of Delivery on any day a quantity of natural
          gas in excess of the applicable Maximum Daily Delivery
          Obligation.
     
                           
                            ARTICLE II
                        TERM OF AGREEMENT
                                
     2.1  This Agreement shall become effective as of the date
          set forth hereinabove and shall continue in effect for
          a term ending on and including October 31, 2012
          ("Primary Term") and shall remain in force from year to
          year thereafter unless terminated by either party by
          written notice one year or more prior to the end of the
          Primary Term or any successive term thereafter.
          Algonquin's right to cancel this Agreement upon the
          expiration of the Primary Term hereof or any succeeding
          term shall be subject to Customer's rights pursuant to
          Sections 8 and 9 of the General Terms and Conditions.
     
     2.2  This Agreement may be terminated at any time by
          Algonquin in the event Customer fails to pay part or
          all of the amount of any bill for service hereunder and
          such failure continues for thirty days after payment is
          due; provided Algonquin gives ten days prior written
          notice to Customer of such termination and provided
          further such termination shall not be effective if,
          prior to the date of termination, Customer either pays
          such outstanding bill or furnishes a good and
          sufficient surety bond guaranteeing payment to
          Algonquin of such outstanding bill; provided that
          Algonquin shall not be entitled to terminate service
          pending the resolution of a disputed bill if Customer
          complies with the billing dispute procedure currently
          on file in Algonquin's tariff.
     
     
                           ARTICLE III
                          RATE SCHEDULE
                                
     3.1  Customer shall pay Algonquin for all services rendered
          hereunder and for the availability of such service
          under Algonquin's Rate Schedule AFT-E as filed with the
          Federal Energy Regulatory Commission and as the same
          may be hereafter revised or changed.  The rate to be
          charged Customer for transportation hereunder shall not
          be more than the maximum rate under Rate Schedule
          AFT-E, nor less than the minimum rate under Rate
          Schedule AFT-E.
     
                                    
     3.2  This Agreement and all terms and provisions contained
          or incorporated herein are subject to the provisions of
          Algonquin's applicable rate schedules and of
          Algonquin's General Terms and Conditions on file with
          the Federal Energy Regulatory Commission, or other duly
          constituted authorities having jurisdiction, and as the
          same may be legally amended or superseded, which rate
          schedules and General Terms and Conditions are by this
          reference made a part hereof.
     
     3.3  Customer agrees that Algonquin shall have the
          unilateral right to file with the appropriate
          regulatory authority and make changes effective in (a)
          the rates and charges applicable to service pursuant to
          Algonquin's Rate Schedule AFT-E, (b) Algonquin's Rate
          Schedule AFT-E, pursuant to which service hereunder is
          rendered or (c) any provision of the General Terms and
          Conditions applicable to Rate Schedule AFT-E.
          Algonquin agrees that Customer may protest or contest
          the aforementioned filings, or may seek authorization
          from duly constituted regulatory authorities for such
          adjustment of Algonquin's existing FERC Gas Tariff as
          may be found necessary to assure that the provisions in
          (a), (b), or (c) above are just and reasonable.
     
     
                           ARTICLE IV
                       POINT(S) OF RECEIPT
                                
     Natural gas to be received by Algonquin for the account of
     Customer hereunder shall be received at the outlet side of
     the measuring station(s) at or near the Point(s) of Receipt
     set forth in Exhibit A of the service agreement, with the
     Maximum Daily Receipt Obligation and the receipt pressure
     obligation indicated for each such Point of Receipt.
     Natural gas to be received by Algonquin for the account of
     Customer hereunder may also be received at the outlet side
     of any other measuring station on the Algonquin system,
     subject to reduction pursuant to Section 6.2 of Rate
     Schedule AFT-E.
     
     
                            ARTICLE V
                      POINT(S) OF DELIVERY
                                
     Natural gas to be delivered by Algonquin for the account of
     Customer hereunder shall be delivered on the outlet side of
     the measuring station(s) at or near the Primary Point(s) of
     Delivery set forth in Exhibit B of the service agreement,
     with the Maximum Daily Delivery Obligation and the delivery
     pressure obligation indicated for each such Point of
     Delivery.
                                    
     Natural gas to be delivered by Algonquin for the account of
     Customer hereunder may also be delivered at the outlet side
     of any other measuring station on the Algonquin system,
     subject to reduction pursuant to Section 6.4 of Rate
     Schedule AFT-E.
     
     
                           ARTICLE VI
                            ADDRESSES
                                
     Except as herein otherwise provided or as provided in the
     General Terms and Conditions of Algonquin's FERC Gas Tariff,
     any notice, request, demand, statement, bill or payment
     provided for in this Agreement, or any notice which any
     party may desire to give to the other, shall be in writing
     and shall be considered as duly delivered when mailed by
     registered, certified, or first class mail to the post
     office address of the parties hereto, as the case may be, as
     follows:
     
     
          (a)  Algonquin:  Algonquin Gas Transmission Company
                           1284 Soldiers Field Road
                           Boston, MA  02135
                           Attn:  John J. Mullaney
                                  Vice President, Marketing


          (b)  Customer:  Colonial Gas Company
                          40 Market Street
                          P. O. Box 3064
                          Lowell, MA  01853
                          Attn:  John P. Harrington
                                 Vice President, Gas Supply


     or such other address as either party shall designate by
     formal written notice.
     
  
                           ARTICLE VII
                         INTERPRETATION
                                
     The interpretation and performance of the Agreement shall be
     in accordance with the laws of the Commonwealth of
     Massachusetts, excluding conflicts of law principles that
     would require the application of the laws of a different
     jurisdiction.
     
     
                          ARTICLE VIII
                   AGREEMENTS BEING SUPERSEDED
                                
     When this Agreement becomes effective, it shall supersede
     the following agreements between the parties hereto.
     
     
     Service Agreement executed by Customer and Algonquin under
     Rate Schedule F-1 dated November 1, 1984
     
                                
                                
     IN WITNESS WHEREOF, the parties hereto have caused this
     Agreement to be signed by their respective agents thereunto
     duly authorized, the day and year first above written.
     
     
                         ALGONQUIN GAS TRANSMISSION COMPANY



                         By:  /s/ John J. Mullaney

                         Title: Vice President, Marketing



                         COLONIAL GAS COMPANY



                         By:  /s/ John P. Harrington

                         Title:  Vice President, Gas Supply

                                 
                            Exhibit A
                       Point(s) of Receipt
                                
                       Dated: June 1, 1993


       To the service agreement under Rate Schedule AFT-E between
     Algonquin Gas Transmission Company (Algonquin) and Colonial Gas
           Company (Customer) concerning Point(s) of Receipt.
                                
                                

     Primary               Maximum Daily               Maximum
     Point of            Receipt Obligation       Receipt Pressure
     Receipt                   (MMBtu)                  (Psig)

     Hanover, NJ (TETCO)       4,415                At any pressure
                                                    requested by
                                                    Algonquin but not
                                                    in excess of 750
                                                    Psig.


     Lambertville, NJ          7,162                At any pressure
                                                    requested by
                                                    Algonquin but not in
                                                    excess of 750 Psig.


Signed for Identification


Algonquin:  /s/ John J. Mullaney

Customer:   /s/ John P. Harrington



                            Exhibit B
                      Point(s) of Delivery
                                
                      Dated:  June 1, 1993


   To the service agreement under Rate Schedule AFT-E between
 Algonquin Gas Transmission Company (Algonquin) and Colonial Gas
       Company (Customer) concerning Point(s) of Delivery.
                                

     Primary              Maximum Daily                    Minimum
     Point of           Delivery Obligation           Delivery Pressure
     Delivery               (MMBtu)                         (Psig)

     On the outlet side
     of meter station
     located at:


     Bourne, MA               7,124                   200

     Sagamore, MA             7,327                   200



Signed for Identification


Algonquin:   /s/ John J. Mullaney

Customer:    /s/ John P. Harrington




                [END OF EXHIBT 10p TO COLONIAL GAS COMPANY 
                    FORM 10-K FOR YEAR ENDING 12/31/93]