The battle over who will get to build new pipeline capacity tothe prized Northeast gas market has reached a feverish pitch, withsponsors dreaming up ways to knock out their competitors’ projects.ANR Pipeline and National Fuel Gas Supply Corp., sponsors of theproposed Independence Pipeline, recently proposed a plan that couldwipe out a large part of Columbia Gas Transmission’s MillenniumPipeline project. And Texas Eastern Transmission (Tetco) has joinedthe ranks, devising a proposal that could obviate the need forIndependence altogether and part of an associated project.

Tetco claims it has enough existing and projected turned-backcapacity on its system so that, when combined with “certainadditional construction,” would satisfy the customer needs ofIndependence and a portion of the MarketLink project. It offeredthe proposal earlier this month, saying it was overlooked by FERCstaff as a possible alternative to Independence in the draftenvironmental impact statement (DEIS) on the pipeline project.Tetco was evaluated as a possible substitute for the MarketLinkproject in the DEIS, the pipeline said, but the availability of itsturned-back capacity was not factored into the equation. TheCommission staff subsequently asked Tetco to provide it with”supplemental comments” on the alternative, which it did this week.

Tetco said it could satisfy market demand of 663,000 Dth/d froman interconnection with ANR Pipeline at Muncie, IN, to Linden, NJ -a demand level that is “commensurate” with the existingsubscriptions for MarketLink (663,000 Dth/d) and 34,000 Dth/d morethan the current subscribed level for Independence (629,000 Dth/d).It contends it can do this by using existing and projectedturned-back capacity, combined with construction of about 75 milesof pipeline looping, a replacement line and some additionalcompression.

All told, Tetco said its alternative would entail 193 miles ofpipeline and 43,900 horsepower of compression at a cost of $194million. This compares to 624 miles of new pipeline and 137,400horsepower of compression for the $678 million Independenceproject, which when combined with ANR’s associated SupplyLink linewould extend from Joliet, IL, to the hub near Leidy, PA.

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