Due to unforeseen circumstances that haven’t been in its favor,ANR Pipeline has asked FERC for permission to phase in constructionof the proposed Phase II expansion of its system between theJoliet, IL, hub and market areas in southeastern Wisconsin.

Rather than adding 194 MDth/d of capacity in one shot throughnew compression and looping, as the pipeline originally intended,ANR told the Commission that “certain events have occurred thatnecessitate” it building the expansion in two parts. The eventsinclude FERC’s decision to withhold a certificate for ANR’sSupplyLink expansion until it can show market need, and thedecisions of one shipper to drop out of the Phase II project andanother to defer service for a year.

In an amendment to its application, ANR proposes initially toexpand its system by 109 MDth/d by adding two compressor units atits Woodstock Compressor Station in Illinois. This would enable itto meet its additional contractual obligations of 59 MDth/d on Nov.1, as well as to meet the shipper agreement for the deferredservice and the projected near-term demand growth in Wisconsin, ANRsaid. ANR asked FERC to “immediately authorize” this part of theproposed expansion.

FERC action on the second half of the expansion, which wouldinclude looping and more compression, would be delayed until afterthe Commission votes on ANR’s proposed SupplyLink project,according to ANR. The pipeline noted the proposed looping in PhaseII and SupplyLink are related.

When it filed its application last March, ANR said it assumedthe SupplyLink expansion, as well as the proposed IndependencePipeline, would be certificated by now. But the Commission put thecertificates on hold last month. Also, ANR noted the immediate needfor the entire 194 MDth/d of capacity has been reduced. Oneunidentified shipper canceled its precedent agreement for 10MDth/d, while another said it wouldn’t need its 25 MDth/d untilNovember 2001 — a year later than originally expected. This hasleft ANR with only three shippers who have contracted for only 59MDth/d of Phase II capacity in November 2000.

Phase I of ANR’s expansion program was put into service lastfall. It included 11.8 miles of looping of its system insoutheastern Wisconsin, and added 120 MMcf/d of capacity betweenthe Chicago and Wisconsin markets.

©Copyright 2000 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.