ANR Pipeline Co. on Monday said bids for 17 Bcf of capacity have been awarded for Phase I of a storage enhancement project in Michigan, which surpassed its target of 13 Bcf. The El Paso Corp. subsidiary is expanding existing storage fields and developing new fields, all in Michigan, under a plan unveiled last November (see Daily GPI, Nov. 17, 2005).

“The Phase I open season’s strong results confirm the market’s desire for additional storage as well as our capability to provide that incremental service at competitive terms,” said Steve Beasley, president of El Paso’s Eastern Pipeline Group. The expected in-service date for Phase I is April 1, 2007.

Through Feb. 22, ANR is holding a binding open season for Phase II of the project, also to provide additional natural gas storage and associated transport service.

The binding open season for Phase II primarily targets customers requesting incremental service beginning April 1, 2008. Results will be used to allocate capacity among all interested shippers. ANR will use the binding precedent agreements from both phases of the project to finalize project design and pursue the regulatory approvals necessary to implement the project.

The 10,600-mile ANR Pipeline system delivers 6.45 Bcf/d of supplies to Midwest and Northeast markets, and it currently has more than 230 Bcf of storage capacity.

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