ANR Pipeline Co. last week requested FERC approval of a $42.1 million pipeline looping and replacement project in Walworth and Rock counties, WI. The West Leg Expansion project is designed to add 220,000 Dth/d of firm transportation capacity to its system in order to serve new demand from local distribution companies and power generators. The pipeline company also started an open season to test the market’s interest in expanding its portion of the Lebanon Lateral, which is jointly owned by Texas Eastern Transmission.

As part of its West Leg Expansion, ANR proposes to add a 26.3-mile, 30-inch diameter loop pipeline along its Madison lateral in Walworth County parallel to its existing 10- and 12-inch diameter pipelines, which will remain in service. Along the 6.5-mile Beloit lateral in Rock County, ANR plans to remove its existing four- and six-inch diameter pipelines and replace them with a single 20-inch-diameter pipeline. The existing eight- and 12-inch diameter pipelines along the Beloit lateral will remain in service. The Beloit construction will result in fewer pipelines while providing increased capacity to ANR’s customers.

“ANR Pipeline’s West Leg project will provide additional, reliable natural gas transportation capacity essential to southern Wisconsin’s growing energy requirements in a cost-effective manner that involves minimal impact to landowners and the environment,” said ANR Pipeline President James J. Cleary.

ANR said that Wisconsin Power & Light, an Alliant Energy subsidiary, has signed a precedent agreement 60,000 for Dth/d of transportation capacity, mainly to serve the proposed 600 MW Riverside Energy power generation facility. ANR said it is discussing a contract with another company for an additional 34,000 Dth/d of West Leg capacity. The project also will provide operational benefits and cost savings by reducing ANR’s reliance on a third-party pipeline for the delivery of natural gas operationally required in the Janesville, WI, area, ANR said.

ANR has met with state and federal agency representatives and landowners about the project and has acquired a majority of the permanent easements necessary to construct the new facilities. The new pipelines will be installed within ANR’s existing rights of way. ANR asked FERC for a preliminary determination by December and final authorizations by next July. The project is expected to be in service in November 2004.

The Lebanon Lateral expansion would provide additional transportation capacity by November 2004 at a level determined by market interest, and is primarily intended to serve incremental growth markets in Ohio, ANR said. The expansion also will access markets further east in Pennsylvania, New York and New Jersey through other interstate pipelines’ existing capacity.

“This [Lebanon Lateral] project is a proposed expansion of an existing system jointly owned by ANR and Texas Eastern Transmission (Tetco),” said ANR’s Mike Stokdyk. “The jointly owned system consists of approximately 60 miles of 36-inch pipeline in southwest Ohio.” Stokdyk said the line was placed in service in 1990 with a capacity of 800 MMcf/d (400 MMcf/d from each company).

“Tetco expanded their capacity from 400 MMcf/d to 650 MMcf/d in the late ’90s by installing compression at Glen Karn, OH. This open season is being undertaken to define the market demand for ANR to expand its capacity in the lateral by installing additional compression at Glen Karn.”

Gas supply for the project can be sourced from Gulf Coast or Midcontinent production, the Joliet Hub in Illinois or ANR’s storage fields. Additional transportation capacity will be developed by increasing compression at an existing facility near Glen Karn.

For additional information or to obtain an open season package, contact Stokdyk at (832) 676-5257 or via e-mail at mike.stokdyk@elpaso.com.

With a total of 10,600 miles of pipe, ANR delivers more than 1 Tcf a year. It has a peak-day delivery capacity of more than 6 Bcf, with total underground storage capacity exceeding 200 Bcf.

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