The Vector Pipeline project, a proposed $470 million pipelineextending from Chicago to the Dawn hub in Ontario, is currentlyholding an open season through May 19. Vector said it is focused onselling the 300 MMcf/d dedicated to come online when its Highlandcompressor station is put in service in 2001. The open seasonstarted last week.

Each prospective gas shipper will have the option to bid byletter agreement either on a negotiated rate or recourse ratebasis. Project managers said this open season approach is intendedto provide shippers with the maximum flexibility to design theirbid to meet their needs.

In the event of over-subscription, capacity will be allocatedamong shippers on a non-discriminatory basis, based on net presentvalue and term. Open season information and terms are posted onVector’s website at www.vector-pipeline.com.

Vector is a joint venture between Calgary-based Enbridge Inc.,Detroit-based MCN Energy Group and Westcoast Energy Inc. ofVancouver. Its target in-service date is this October. The goal ofthe project is provide a competitive additional supply source atDawn and to serve key markets in Ontario, Quebec, the Midwest andNortheast regions of the United States. Vector was one of the firstof several proposed Chicago to Northeast pipelines to win FERCapproval. The Commission approved the project in May 1999 (see NGI,May 31).

The pipeline will have an initial delivery capacity ofapproximately 700 MMcf/d. All of that load is fully subscribed as aresult of an open season held in 1997. The capacity is scheduled toincrease, however, to 1 Bcf/d following completion of the Highlandstation in Michigan. A Vector representative also said the line canbe cost-effectively expanded to 1.5 Bcf/d with added compression.

“We’d really like to reach 1.5 Bcf/d,” said Anthony Zlahtic, aVector spokesman. “With this open season, we’ll test the waters,and our main focus is to use up that 300 MMcf/d of unsubscribedcapacity. If demand warrants more, who knows? We could add morecompression if the situation is right.”

John Norris

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