CMS Adds Midstream and Downstream Assets
CMS Gas Transmission and Storage Co. continued its activity
binge Wednesday as its subsidiary CMS Continental Natural Gas
purchased Anson Gas Marketing and the Midcontinent Gas Pipeline
from Chesapeake Energy Marketing. Terms of the transaction were not
Anson Gas Marketing purchases natural gas for resale primarily
in Oklahoma. A CMS official estimated Anson marketed 20 Bcf last
year. The assets of Midcontinent Gas Pipeline consist of six small
gas gathering systems, which had a total throughput of 2 Bcf for
1998. This transaction also includes a commitment by Chesapeake
Operating of certain volumes of gas to CMS Continental.
"As far as the Anson Marketing and Midcontinent Pipeline
purchases go, the moves help bolster our Midcontinent midstream
presence," said CMS spokesman Kelly Farr. "By improving that area
of our operations, we move significantly closer to our overall aim
of connecting the Michigan market with the major producing regions
of the country."
This is CMS Continental's first move since March when it forged an
agreement with a partnership between Pennaco Energy Inc. and CMS Oil
and Gas Co. to gather gas from the partnership's Powder River Basin
project (see Daily GPI, March 31).
Its parent company has also been busy. Besides the dealings of CMS
Continental, CMS Gas Transmission has been heavily involved in the
planning and open season of the Guardian Pipeline, a proposed
interstate pipeline intended to serve northern Illinois and southern
Wisconsin (see Daily GPI, April 26). The
open season took place last month and Farr said an announcement will
be made in the next couple of weeks regarding the results.
Farr also said CMS Gas Transmission is busy trying to get a
re-hearing with FERC concerning the status of the TriState Pipeline, a
650 MMcf/d proposed gas pipeline that would extend to the Dawn Hub in
Ontario from Joliet, IL, near Chicago. In late May, FERC told CMS and
its partner Westcoast Energy, that the proposed route for TriState had
serious flaws and needed to be redesigned (see Daily GPI, May 27). "We think FERC misread
our proposal. Hopefully we can get a re-hearing scheduled soon so
that this bump can be worked out."
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