Burgeoning gas demand in the southeastern United States hasspawned another pipeline project. The latest comes from ColumbiaGulf Transmission, AGL Resources, and MCN Energy Group. The trioyesterday began a six-week open season offering up to 250,000 Dth/dof capacity on the proposed Volunteer Pipeline.

“The why is simply the fact that the southeastern market is agrowing, booming area, and this is an effort to get into that area.The Northeast has been talked about a lot. The Southeast is anotherarea,” said Columbia Gulf spokesman Bob Kiser.

“Volunteer is targeting a growing market that needs additionalcapacity, so we’re not competing against alternative proposals..We’re providing an economic means to meet that growing need forgas,” said MCN spokesman Stewart Lawrence. This is a very strategiclink among existing pipeline systems. One of the key benefits hereis it allows for the delivery of Canadian natural gas tosoutheastern markets by utilizing backhaul arrangements and othermeans. There are direct links into the Midcontinent area as well.”

The 24-inch diameter Volunteer would run 160 miles from aninterconnect with Midwestern Gas Transmission near Portland, TN, toan interconnect with recently unbundled Atlanta Gas Light nearChattanooga, TN. Interconnections with East Tennessee Natural Gasand Southern Natural Gas, as well as Columbia Gulf and TexasEastern Transmission also will be available. Potentially expandableto 500,000 Dth/d, Volunteer will provide firm transportation atrates in the neighborhood of 22 cents/Dth, Kiser said.

The equal partners in the project expect to file with theFederal Energy Regulatory Commission in 2000 and have the pipelinein service by November 20001. Columbia Gulf will operate thepipeline, which is expected to cost about $160 million

“I believe we’ve got strong support for this project,” Lawrencesaid. “We’ve done a lot of leg work on it and believe the openseason is going to be successful. We will see in about 45 days.”The open season ends May 28, 1999.

East Tennessee last month announced an open season forincremental capacity along its mainline in Tennessee and Virginia.The expansion would entail construction of mainline, compressionand related facilities with in service planned for Nov. 1, 2000.”East Tennessee is really a subset of the whole Southeast, which isjust growing by leaps and bounds with a lot of industrial growth inthe area,” said Bryan Neskora, El Paso manager of businessdevelopment.

The Volunteer Pipeline is not to be confused with Columbus,OH-based marketer Volunteer Energy of which Williams EnergyServices recently acquired another 50%, increasing its stake to100%.

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