After an assault on its prized Wisconsin markets earlier thismonth by a formidable new rival pipeline project proposed by Wicor,Viking Gas and CMS Energy, ANR Pipeline came out shooting last weekwith a pledge to continue its annual expansions into the state. TheCoastal Corp. subsidiary said its “10-Cent Solution” program, whichhas yielded two expansion projects in the last eighteen months willcontinue to be the best option for gas shippers in the region. Thisyear’s open season started last week and will continue throughApril 30 for new firm transportation service starting Nov. 1, 2001.

The current ANR project includes adding firm, year-round FTS-1or ETS transportation to delivery points in northern Illinois andWisconsin, including interconnections with Viking Gas atMarshfield, WI, and Northern Natural at Janesville, WI. Options,such as delivery of summer volumes to ANR’s storage facilities inMichigan, 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 timeto begin construction during the summer of 2001 for an in-servicedate of Nov. 1, 2001, the pipeline said.

Two weeks ago, ANR filed an application for its second Wisconsinpipeline expansion in less than two years. The $37.5 millionproject would increase capacity on ANR’s system by 200 MMcf/dthrough the addition of 21,500 hp of compression and three miles of42-inch diameter pipe.

“Like our 1997 and 1998 open seasons, our 1999 proposal againprovides the opportunity for growth capacity to Wisconsin,Minnesota and Illinois customers on an incremental basis, matchingthe market’s needs, with competitive rates and favorable terms,”said ANR President Jeffrey A. Connelly. “Any expansion by ANR wouldmaximize the use of our existing infrastructure while minimizingenvironmental impact.”

ANR has had great success over the past few years defending itsmarket territory from potential suitors, including the VikingVoyageur, Voyageur and Illinois Wisconsin Express expansionprojects. It’s latest competitor, the proposed $230 millionGuardian Pipeline project, was launched two weeks ago, by Viking,Wicor and CMS. It could be its most formidable opponent yet becauseof a signed contract for more than 80% of its proposed capacitywith affiliate and Wisconsin gas distributor Wisconsin Gas Co. TheGuardian pipeline would add between 750 MMcf/d and 1.1 Bcf/d offirm transportation capacity into southern Wisconsin and northernIllinois from Joliet in November 2002.

Rocco Canonica

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