With its system running full through most of last year, PG&EGas Transmission Northwest (GTN) doesn’t need to read the tealeaves to determine it’s time to expand. The pipeline announced anopen season beginning yesterday for a 200 MMcf/d capacityexpansion.

The new throughput, targeted for deliveries Nov. 1, 2002, is partof a five-year expansion program outlined by the pipeline last week toadd to the 2.7 Bcf/d of Canadian gas GTN currently carries into thePacific Northwest from the Canadian border to the California border(see Daily GPI, Dec. 21, 2000).

The expansion is expected to include compression and somelooping on the 612-mile system. The open season ends Feb. 15, afterwhich there will be a capacity rationalization period, which willallow existing shippers to release capacity directly to customerswho have expressed an interest. Contracts for the new pipelinecapacity will be finalized by March 31.

“Tight gas supplies in the West this winter indicate a need foradditional pipeline capacity,” said Peter G. Lund, vice presidentfor the PG&E National Energy Group West Region, which includesGTN. “We are targeting a Nov. 1, 2002 in-service date for thiscapacity addition. But if we are able to complete the FERC processsooner than is now anticipated, we will be in a position to beginconstruction early, so that the new capacity can be in servicesooner.” Lund said GTN has submitted a request to TransCanadaPipeLines for upstream capacity to serve expansion customers.

The California situation, including new power generation loadcoming on, is causing GTN to accelerate its expansion schedule. Forthe next five to eight years, PG&E Corp. expects to be busywith pipeline expansions and new additions. If a gas pipeline isbuilt from Alaska south into Canada, there could be furtherexpansions by PG&E National Energy Group to transport thesupplies into the lower 48.

“Overall what we are looking at is the potential to expand thesystem by 1 Bcf/d over the next decade,” said Sandra McDonough,spokeswoman for PG&E Corp.

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