ANR Tries to Protect WI Market from New Rival
After facing attack last week by a formidable new Wisconsin
pipeline rival proposed by Wicor, Viking Gas and CMS Energy, ANR
Pipeline came out shooting yesterday with a pledge to conduct
annual expansions on its existing system into the state. The
Coastal Corp. subsidiary said its "10-Cent Solution" program, which
has yielded two expansion projects in the last eighteen months is
the best firm transportation solution for the region. This year's
open season is being held from March 15 through April 30 for
service beginning Nov. 1, 2001.
The proposal includes firm, year-round FTS-1 or ETS
transportation to delivery points in northern Illinois and
Wisconsin, including interconnections with Viking Gas at
Marshfield, WI, and Northern Natural at Janesville, WI. Other
options, such as delivery of summer volumes to ANR's storage
facilities in Michigan, also will be considered. To meet new
service requests, ANR plans to expand its existing line following
approval from FERC. An application for additional system capacity
will be filed in time to begin construction during the summer of
2001 for an in-service date of Nov. 1, 2001, the pipeline said.
Last week, ANR filed an application for its second Wisconsin
pipeline expansion in less than two years. The $37.5 million
project would increase capacity on ANR's system by 200 MMcf/d
through the addition of 21,500 hp of compression and three miles of
42-inch diameter pipe.
"Like our 1997 and 1998 open seasons, our 1999 proposal again
provides the opportunity for growth capacity to Wisconsin,
Minnesota and Illinois customers on an incremental basis, matching
the market's needs, with competitive rates and favorable terms,"
said ANR President Jeffrey A. Connelly. "Any expansion by ANR would
maximize the use of our existing infrastructure while minimizing
ANR has had great success over the past few years defending its
market territory from potential suitors, including the Viking
Voyageur, Voyageur and Illinois Wisconsin Express expansion
projects. It's latest competitor, the proposed $230 million
Guardian Pipeline project, was launched last week and could be its
most formidable opponent yet because of a signed contract for more
than 80% of its proposed capacity with affiliate and Wisconsin gas
distributor Wisconsin Gas Co. The pipeline would add between 750
MMcf/d and 1.1 Bcf/d of firm transportation capacity into southern
Wisconsin and northern Illinois from Joliet in November 2002.
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