Chicago-to-Dawn Services for Sale
In an effort to compete with newcomer Vector Pipeline, Coastal's ANR
Pipeline, Great Lakes Gas Transmission and TransCanada PipeLines have joined
forces to provide a hub-to-hub transportation service between Chicago,
IL, and Dawn, ON.
The three companies announced plans last week to utilize capacity on
their three systems for the service for the entire winter, commencing Nov.
1 and continuing through March 31, 2001. Each of the companies will offer
transportation on its respective system. ANR will provide transportation
between Chicago and Farwell, MI, for a rate of 5 cents/Dth/d plus fuel
and the ACA surcharge. Great Lakes will provide service from Farwell to
St. Clair, MI, for a rate of 5 cents/Dth/d plus fuel and the ACA surcharge.
From St. Clair to Dawn, service will be provided by TransCanada for a biddable
firm or interruptible rate as low as 2 cents/Dth/d plus fuel and pressure
charges. The total cost for service on all three pipelines, including fuel,
is 23 cents/Dth/d, which is about a nickel less than Vector's recourse
rate but still 11 cents more than the current winter spread between the
two points according to a gas marketer. Vector is expected to begin flowing
up to 720 MMcf/d of gas from Chicago to Dawn on its new pipeline on Dec.
1 (see NGI, Oct. 9; July
ANR, Great Lakes and TCPL said no new facilities will be required to
provide the services, which will help to link two of the pre-eminent gas
hubs in North America. Depending upon market interest, however, additional
Chicago-to-Dawn services may be provided in the future. For example, winter-only
and annual-capacity services may become available, the three pipeline companies
For additional information contact Jan Connelly at ANR, (313) 496-3659;
the Great Lakes marketing hotline, (888) 275-3611; and TransCanada's Iain
MacRae, (416) 869-2123.
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