Tetco Plans Market Area Expansion

Texas Eastern Transmission Corp. (Tetco) is holding open season from Dec. 11 to Jan. 12 for a pipeline expansion in its M3 market area in the Mid-Atlantic and Northeast. The project will combine existing unsubscribed capacity with incremental firm capacity to create a low-cost expansion option for Texas Eastern shippers, the pipeline said.

During the open season, shippers can submit non-binding nominations to move gas from the Gulf Coast, Chicago/Lebanon lateral and other receipt points on the Tetco system to delivery points in the Northeast. By utilizing existing capacity that initially served Midwest markets, Texas Eastern's Incremental Market Expansion (TIME) will enable the pipeline to reconfigure its existing pipeline system and with modest additions to existing facilities (compression and looping in M3) provide significant increased capacity to Mid-Atlantic and Northeast markets at existing approved rates.

There will be enough unsubscribed capacity available to package with incremental requests to deliver 300 MMcf/d in M3 at the existing rates, said Duke Energy's Robert Riga. "That would be the maximum that we could do at the existing rate level. If we get over that 300 MMcf/d, we would probably feel some pressure to have to put in a higher rate than the current max rate."

Robert B. Evans, president of Duke Energy Gas Transmission, called the project a "unique market solution that will allow our shippers to subscribe for additional capacity from liquid supply points on the Tetco system at the same competitive rate as imbedded capacity. By reconfiguring existing unsubscribed capacity to meet customers' needs, Tetco can efficiently deliver cost-effective and flexible services even at lower volumes. There is no large threshold requirement."

In recent years, the Northeast and Mid-Atlantic markets have experienced renewed growth in traditional markets as well as the construction of new electric generation.

"By redirecting existing capacity and reducing, to the greatest extent possible, its reliance on new construction, TIME provides efficient market solutions while minimizing landowner and environmental impacts," Evans said. "TIME's market-responsive features also allow phasing volumes in to meet the market's timing."

For more information on the open season, contact Robert Riga at (617) 560-1436.

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