Shale Daily / NGI All News Access

ANR Expansion Would Target Marcellus, Utica Production

TransCanada's ANR Pipeline Co. is holding a nonbinding open season for potential expansion of receipt capacity on its Lebanon Lateral in eastern Indiana and western Ohio. The project would carry growing production from the Marcellus and Utica shales, TransCanada said.

"The project is intended to complement recent proposals [such as those by Dominion Transmission (see Shale Daily, Jan. 31) and Texas Eastern Transmission (see Shale Daily, April 20)] to move natural gas from the Marcellus and Utica shale production areas to Lebanon, OH," TransCanada said in its open season notice. "From Lebanon, ANR can provide transportation north to markets in Michigan, Indiana, Illinois and Wisconsin or to Gulf Coast markets and delivery points as far south as Patterson, LA."

The offering indicates an initial expansion of receipt capacity of 350,000 Dth/d with the possibility of future expansion up to 620,000 Dth/d.

Depending on shipper interest, ANR proposes to construct minor facility modifications and possibly additional compression to bring the shale gas into its system and move it to premium markets from the Midwest to the Gulf Coast. "We know that new supplies of natural gas associated with shale formations in Ohio, Pennsylvania and elsewhere are seeking new markets and transportation alternatives," said Dan Andruccioli of ANR's business development department. "Expansion of the receipt capacity on the existing Lebanon Lateral on the ANR System would provide new, valuable transportation options that could deliver gas to markets in the Southeast and Midwest."

The Utica and Marcellus formations have seen "dramatic increases" in production, TransCanada said. "This is a great opportunity for customers to get shale gas to market," Andruccioli said. "Having options benefits everyone."

A recent analysis of the Marcellus region and natural gas infrastructure by LCI Energy Insight and Energy Ventures Analysis found that infrastructure developers are racing to keep up with producers. "At present, the Marcellus Shale play is the fastest growing gas play in the U.S.," LCI and EVA said. "In 2012, it is projected to account for over 40% of expected increases in U.S. shale production and approximately one-third of the increases in shale production in 2013" (see Shale Daily, Feb. 21).

For more information on the open season, contact Andruccioli at (832) 320-5451 or Michael Wells at (832) 320-5436.

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