ANR blamed FERC’s decision to withhold a certificate for ANR’s SupplyLinkexpansion until it can show market need, and the decisions of one shipperto drop out of the Phase II project and another to defer service for ayear for delaying part of the construction (See NGI Dec.20, 1999).

Rather than adding 194 MDth/d of capacity in one shot through new compressionand looping, ANR proposes to initially expand its system by 109 MDth/dby adding two compressors. This would enable ANR to meet its additionalcontractual obligations of 59 MDth/d on Nov. 1, 2000, as well as to meetthe shipper agreement for the deferred service in 2001 and the projectednear-term demand growth in Wisconsin. ANR asked FERC to “immediately authorize”this construction.

FERC action on the second half of the expansion, which would includelooping and more compression, would be delayed until after the Commissionvotes on ANR’s proposed SupplyLink, which is related to the controversialIndependence project. When it filed its application last March, ANR saidit assumed those projects would be certificated by now. But the Commissionput the certificates on hold last month. Also, ANR noted shipper defectionshave left it with just three shippers who have contracted for only 59 MDth/dof Phase II capacity in November 2000.

Phase I of ANR’s expansion program was put into service last fall. Itincluded 11.8 miles of looping of its system in southeastern Wisconsin,and added 120 MMcf/d of capacity between the Chicago and Wisconsin markets.

Susan Parker

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