BC Gas said last week it will file another application with theBritish Columbia Utilities Commission (BCUC) for its previouslydenied Southern Crossing Project and said a recent open seasongarnered interest exceeding available capacity.

In April, the BCUC voted down the $350 million pipeline thatwould have paralleled the BC Gas mainline in southern BritishColumbia between Yahk and Oliver (See NGI April 13, 1998). Thecommission said “projected growth in demand from residential andcommercial customers alone on the BC Gas system were not sufficientto justify the large capital expenditures at this time.” However,BC Gas was ordered to look into marrying the seasonal and peakingneeds of its customers with those of new thermal generation plantsof BC Hydro.

BC Gas said it is pursuing possibilities for third-partyrevenue, including BC Hydro or others. Open season respondentscould be suppliers of gas to BC Hydro, BC Gas and other purchasersin British Columbia. Once BC Gas contracts capacity to BC Hydro, itcould purchase some of the capacity back during peak demand periodsfor gas.

Northwest Pipeline and Westcoast Energy each have projects inthe works to compete with Southern Crossing and serve the PacificNorthwest. Northwest’s Columbia River Gorge project couldultimately add 250,000 Dth/d from the Stanfield interconnect withPacific Gas Transmission through the Columbia River Gorge todelivery points on Northwest between Stanfield and Sumas.

Westcoast is holding an open season for expansion of its systembetween producing fields of northeastern British Columbia,production areas in northern Alberta, and downstream markets inBritish Columbia.

And TransCanada subsidiary ANG Pipeline is proposing a 550MMcf/d pipeline across southern British Columbia providing Albertaproducers with direct access to growing markets in British Columbiaand the U.S. Pacific Northwest. Scheduled for completion inNovember 2000, the Kootenay Pacific Pipeline will be a 348-mile,20-inch line from the ANG system near Yahk to the BC Lower Mainlandat Huntingdon/Sumas. If markets are sufficient, ANG plans to filean application with the National Energy Board in the third quarterfor approval to begin construction in May. The estimated cost ofthe project is C$530 million.

Four liquefied natural gas (LNG) storage projects also have beenproposed to meet peak-shaving demand in the region. Proposals havecome from BC Gas, Pacific Gas Transmission, Westcoast Gas Services,and Williams International Pipeline. The BCUC has said it favorsthree of the alternatives for meeting the region’s demand. Itprefers the LNG options (considered collectively), Northwest’sexpansion, and the Southern Crossing project.

Joe Fisher, Houston

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