Great Lakes Gas Transmission said it is offering about 200,000 Dth/d of short-term winter-only firm transportation service between the Chicago and Dawn hubs utilizing capacity on its pipeline system as well as capacity on ANR Pipeline and TransCanada.
The company said its offering is directed at customers who may not want to lock into long-term transportation agreements for expansion service on the competing Vector Pipeline system. Vector currently is holding an open season for 500 MMcf/d of capacity with binding bids due on Wednesday.
Great Lakes said it will use its FERC authorization to obtain available off-system capacity together with capacity on its own pipeline system to provide the "hub-to-hub" service seamlessly. Gas theoretically would flow from Chicago to Farwell (storage fields) on ANR Pipeline, then from Farwell to St. Clair on Great Lakes Gas Transmission and St. Clair to Dawn on TransCanada.
The service is being offered for this winter but Great Lakes also said it also could structure service for future winters in multiple-year packages. The service cannot be offered year-round.
The current pricing for the service is 9.3 cents/Dth in reservation charges, 4.7 cents in utilization fees, fuel and surcharges. Assuming fuel costs $7.50/Dth, the total transportation cost between Chicago and Dawn would be 31 cents/Dth, the pipeline said.
"We believe this low-reservation fee service offers the market a convenient and cost-effective alternative to address winter service needs," said Martin Wilde, Great Lakes director of marketing and business operations. Wilde said depending on the level of market interest the company would hold an open season for the service offering.
The primary receipt points at the Chicago hub in Joliet, IL, include Natural Gas Pipeline Co. of America, Alliance Pipeline, ANR Pipeline, Northern Border and Midwestern. Primary delivery points on Great Lakes include Chippewa (Consumer's Energy), Belle River (MichCon) and Dawn (Union Gas).
For more information contact Great Lakes at (888) 275-3611.
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