Announcements of new pipeline projects are booming despiterecently voiced concerns by pipeline executives that return onequity is not sufficient to justify new construction (see NGI, Feb.2). A recent NGI survey of projects announced over the last threeyears indicates more than 7 Bcf/d of new capacity has already beenconstructed in the U.S. and Canada, with nearly 21 Bcf/d ofcombined capacity additions approved or under consideration. Thisis in addition to projects canceled or put on hold indefinitely.

More than 5.9 Bcf/d is earmarked for the Midwest, with twosmaller projects already completed: a 76 MMcf/d expansion onNorthern Natural and a 150 MMcf/d looping project on Viking GasTransmission. A 663 MMcf/d expansion has been approved for NorthernNatural’s Chicago Project. In the wings is another 5.2 Bcf ofpossibilities: 2 Bcf/d on Alliance Pipeline, 116 MMcf/d for ANR’sWisconsin Expansion, 426 MMcf/d on Great Lakes, 350 MMcf/d forNorthern Natural’s Peak Day 2000 plan, and a recently announcedexpansion of 150 MMcf/d on Viking Gas Transmission to compensatefor Viking Voyageur, which is now on hold.

Crossroads Pipeline, in conjunction with CNG Transmission andEast Ohio Gas, could initially support up to 146 MMcf/d fromChicago eastward. Vector Pipeline would move up to 1 Bcf/d from theChicago area, through Michigan and into Dawn, Ontario forredelivery in various U.S. and Canadian markets. TriState pipeline(300 MMcf/d initially, expandable to more than 1 Bcf/d) wouldprovide service from the Chicago area to Michigan, Ontario andthrough connecting pipelines to eastern U.S. markets.

More than 6.7 Bcf/d of capacity is headed for the NewYork/Northeast market. Projects include Tennessee’s Eastern Express(up to 1 Bcf/d), Independence Pipeline(916 MMcf/d), Cross BayPipeline (700 MMcf/d), Portland Natural Gas Transmission (178MMcf/d), Duke’s Spectrum (500 MMcf/d), Iroquois expansions (210.5MMcf/d), Maritimes & Northeast’s project moving Sable Islandproduction into the Northeast (530 MMcf/d). Millennium Pipeline(650 MMcf/d), Transco’s MarketLink (700 MMcf/d), National Fuel’sNiagara Expansion (25 MMcf/d, already completed), ANR’s SupplyLink(750 MMcf/d), TransCanada’s 1999 expansion (275 MMcf/d) and thenewly announced Lighthouse Pipeline (350 MMcf/d). However, some ofthese are competing loads, while others are designed to dovetail.

Canadian projects to serve markets in the Midwest and Northeastinclude the Alberta Pipeline project (1.2 Bcf/d), a phased-inexpansion of Nova Gas Transmission with 500 MMcf/d alreadycompleted and another 1.1 Bcf/d approved; and TransCanadaPipeline’s expansions, including 286 MMcf/d completed and 275MMcf/d planned for 1999.

The Gulf of Mexico also is expected to bring new supplies intomarket, with about 2.7 Bcf/d of capacity already constructed,including Dauphin Island Gathering System (DIGS with 500 MMcf/d),Garden Banks Gathering (1 Bcf/d), Mississippi Canyon (600 MMcf/d),Nautilus Pipeline (600 MMcf/d). Another 2.1 Bcf/d is still beingdeveloped for the Gulf: Destin Pipeline (1 Bcf/d), Discovery (650MMcf/d), and Mobile Bay (500 MMcf/d).

In the Rockies, pipelines are de-bottlenecking the area with a100 MMcf/d project on CIG’s Campo Lateral, a 110 MMcf/d expansionon Trailblazer already completed, the southern end of TransColoradoGas Transmission (300 MMcf/d) on line and the rest underconstruction this summer, and expansions on Wyoming Interstate, 52MMcf/d planned for this year and 193 MMcf/d already completed. Twopipelines are in competition to move gas into Denver: Front Range(150 MMcf/d), and Front Runner (254 MMcf/d).

And KN Interstate’s Pony Express Line (255 MMcf/d) went on linein 1997. El Paso’s expansion of its Bondad line from Ignacio, CO,to Blanco, NM, would add 116.5 MMcf/d.

In the Northwest, the Columbia River Gorge project of Northwestrecently held a second open season that could yield an additional245 MMcf/d from the Stanfield interconnect with Pacific GasTransmission to delivery points on Northwest between Stanfield andSumas.

In the Southwest, MidCon continues to work on its plan to move270 MMcf/d into Mexico. NGPL won approval to expand its AmarilloLine. El Paso has already built its Havasu Crossover (180 MMcf/d)to its northern and southern lines, while it continues to vie forcapacity to Samalayuca, Mexico, (210 MMcf/d), and TransWestern hascompleted its San Juan East Flow Flexibility programs (735 MMcf/d).TransWestern has the San Juan (200 MMcf/d) and La Plata (180MMcf/d) line expansions.

Finally, in the Southeast, Transco has completed its Pocono andSunbelt expansions(190 MMcf/d), while its Cardinal extension andCherokee expansion have been approved(220 MMcf/d), and itsCumberland project is in development(450MMcf/d).

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