Vector Holds Open Season
The Vector Pipeline project, a proposed $470 million pipeline
extending from Chicago to the Dawn hub in Ontario, is currently
holding an open season through May 19. Vector said it is focused on
selling the 300 MMcf/d dedicated to come online when its Highland
compressor station is put in service in 2001. The open season
started last week.
Each prospective gas shipper will have the option to bid by
letter agreement either on a negotiated rate or recourse rate
basis. Project managers said this open season approach is intended
to provide shippers with the maximum flexibility to design their
bid to meet their needs.
In the event of over-subscription, capacity will be allocated
among shippers on a non-discriminatory basis, based on net present
value and term. Open season information and terms are posted on
Vector's website at www.vector-pipeline.com.
Vector is a joint venture between Calgary-based Enbridge Inc.,
Detroit-based MCN Energy Group and Westcoast Energy Inc. of
Vancouver. Its target in-service date is this October. The goal of
the project is provide a competitive additional supply source at
Dawn and to serve key markets in Ontario, Quebec, the Midwest and
Northeast regions of the United States. Vector was one of the first
of several proposed Chicago to Northeast pipelines to win FERC
approval. The Commission approved the project in May 1999 (see NGI,
The pipeline will have an initial delivery capacity of
approximately 700 MMcf/d. All of that load is fully subscribed as a
result of an open season held in 1997. The capacity is scheduled to
increase, however, to 1 Bcf/d following completion of the Highland
station in Michigan. A Vector representative also said the line can
be cost-effectively expanded to 1.5 Bcf/d with added compression.
"We'd really like to reach 1.5 Bcf/d," said Anthony Zlahtic, a
Vector spokesman. "With this open season, we'll test the waters,
and our main focus is to use up that 300 MMcf/d of unsubscribed
capacity. If demand warrants more, who knows? We could add more
compression if the situation is right."
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