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ANR Measures Shipper Interest in Storage Expansion

ANR Pipeline, a subsidiary of El Paso Corp., last Wednesday announced the start of an open season for incremental natural gas storage and associated transportation service.

The open season will run through Dec. 16. ANR plans to expand its existing storage fields as well as develop one or more new fields, all in Michigan, according to El Paso. The project will be placed in service in two separate phases.

The binding open season through Dec. 16 is designed to solicit bids for incremental service under Phase 1 of the project, which is targeted for in-service on April 1, 2007. ANR plans to hold another open season for Phase II, with service beginning April 1, 2008, the company said.

El Paso noted that it will use binding shipper agreements to size its expansion project and seek regulatory approvals.

ANR held a nonbinding open season over the summer and received "substantially more requests for capacity" than its planned storage expansion could serve, El Paso noted. "The level of interest in our initial open season confirms the value of strategic natural gas storage along the ANR system" said Stephen C. Beasley, president of El Paso's Eastern Pipeline Group.

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

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