Northwest Pipeline put shippers on notice last week that itplans to undertake a system enhancement program and will begintaking requests for a pipeline expansion project. The enhancementprogram, which will involve adding pipeline looping andcompression, is designed in part to resolve a supply displacementproblem stemming from an expiring contract.

The PITCO/PanAlberta contract covers 144 MDth/d of displacementcapacity that operates under operational flow order. Under thecontract, Northwest can requires PanAlberta to deliver up to thefull amount of gas into its system in order to provide displacementservices. The contract is due to expire on Oct. 31, 2003.

Northwest and its shipper advisory board have been discussingpotential ways to significantly reduce its existing reliance upondisplacement for north flow transportation services in the Ignacio,CO, to Stanfield, OR, corridor.

The notice sent out to shippers last week states that as apartial solution to the displacement contract expiring, “Northwesthas identified an economically viable system expansion project thatwould provide additional physical capacity to resolve a significantportion of the displacement capacity issue. Northwest is pursuingcustomer support for this project on a rolled-in basis because thesystem expansion will partially replace displacement capacity withphysical capacity in order to improve service reliability andflexibility for existing shippers.” It added that any north flowexpansion capacity added between Green River, WY, and Stanfieldwould be “reserved for the contemplated partial displacement fixfor the benefit of existing shippers.”

A company spokesman would not say how much capacity would beadded to accomplish physical northward flow or how much the projectwould cost. “Right now our enhancement project has not been fullydefined,” said John Smith, director of regulatory affairs. “Theonly purpose for this notice is to put shippers on notice that wewould be evaluating requests for capacity based on this enhancementbeing in place. It would include some pipeline additions andcompression to eliminate displacement…

“In addition to this system enhancement at some point in thefuture we’re going to have an open season for other shippers thatmay want to expand,” Smith added. “We haven’t decided when that’sgoing to be. The reason we are doing that is because constructioncosts can be reduced if we do it all at the same time.”

Smith said once Northwest completes a system design that willenable physical northward flow, it would begin taking requests forexpansion services for northward flow and install facilities thataccomplish both needs.

Rocco Canonica

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