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ANR Amends Proposal To Expand into Wisconsin

ANR Amends Proposal To Expand into Wisconsin

One fallout from the Federal Energy Regulatory Commission's decision last month to put the proposed Independence and associated pipelines on hold was a request by ANR Pipeline last week to downsize and delay expansion of its system. ANR now proposes to build its proposed Phase II expansion between the Joliet, IL, hub and market areas in southeastern Wisconsin in two stages.

ANR blamed FERC's decision to withhold a certificate for ANR's SupplyLink expansion until it can show market need, and the decisions of one shipper to drop out of the Phase II project and another to defer service for a year for delaying part of the construction (See NGI Dec. 20, 1999).

Rather than adding 194 MDth/d of capacity in one shot through new compression and looping, ANR proposes to initially expand its system by 109 MDth/d by adding two compressors. This would enable ANR to meet its additional contractual obligations of 59 MDth/d on Nov. 1, 2000, as well as to meet the shipper agreement for the deferred service in 2001 and the projected near-term demand growth in Wisconsin. ANR asked FERC to "immediately authorize" this construction.

FERC action on the second half of the expansion, which would include looping and more compression, would be delayed until after the Commission votes on ANR's proposed SupplyLink, which is related to the controversial Independence project. When it filed its application last March, ANR said it assumed those projects would be certificated by now. But the Commission put the certificates on hold last month. Also, ANR noted shipper defections have left it with just three shippers who have contracted for only 59 MDth/d of Phase II capacity in November 2000.

Phase I of ANR's expansion program was put into service last fall. It included 11.8 miles of looping of its system in southeastern Wisconsin, and added 120 MMcf/d of capacity between the Chicago and Wisconsin markets.

Susan Parker

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