TriState Pipeline L.L.C. last week asked FERC to place the U.S. portion of its Chicago-to-Canada project on indefinite hold, which only added more fuel to industry speculation that the project’s future is tenuous at best.

TriState made the request after it was informed by Union Gas Ltd., an affiliate of Westcoast Energy, that it no longer was interested in “pursuing or renegotiating agreements” on the Canadian portion of the TriState pipeline. “TriState, therefore, needs to re-evaluate its project to take into account this recent development,” wrote William J. Haener, president and CEO of CMS Gas Transmission and Storage, the sole investor in TriState.

Union Gas’ move comes only weeks after affiliate Westcoast, which had held a 33% interest in TriState, pulled out of the venture. It turned around and purchased a 30% stake in the competing Vector Pipeline project, which is far ahead in the race to serve gas markets in Illinois, Michigan and Ontario.

Haener further noted TriState needed more time to assess whether “certain conditions” in FERC’s Sept. 30 order, which awarded the project a preliminary determination, “may subject all or a substantial portion of [Consumers Energy’s and Michigan Gas Storage’s] systems to the risk of direct bypass via the capacity leased to TriState.” The facilities of Consumers Energy and MGS, which are affiliates of CMS Gas Transmission, would be used as part of the TriState project. (See Daily GPI, Sept. 30)

TriState asked the Commission to hold its project in “abeyance…..until such evaluations have been completed.” It said it would provide FERC with a status report on the TriState project no later than Jan. 15, 2000.

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