Tetco, East Tennessee Connections Opened, Expansion Planned
Duke Energy Gas Transmission said yesterday it opened two 400
MMcf/d interconnections between its newly-acquired East Tennessee
pipeline system and Texas Eastern Transmission (Tetco), paving the
way for ETNG customers to access more diverse supplies from the
Gulf Coast region.
Duke bought the pipeline for $386.3 million in stock in January
after El Paso was forced to sell the asset by the Federal Trade
Commission as part of its merger with Sonat. At the time of the
purchase, Duke Energy Gas Transmission President Robert Evans said
the 1,100-mile East Tennessee pipeline was a good fit with Tetco
because it crossed its line twice and was in an area of growing gas
and power demand.
East Tennessee's two mainline systems in central Tennessee
converge near Knoxville, extending thereafter to a point near
Roanoke, VA. The pipeline has a design capacity of 700 MMcf/d and
provides transportation and storage services to 40 local
distribution companies and 16 industrial customers in the region.
It crosses Tetco at its Mt. Pleasant compressor station and again
near the town of Hartsville.
Duke also is planning a new East Tennessee expansion project,
called Gateway, to accommodate expected growth in the region. Gas
consumption is growing at an annual rate exceeding 4% in the
Southeast region, which is double the national average. An open
season for the Gateway Expansion will be held through June 15,
allowing shippers to submit non-binding elections for firm
transportation capacity. Service will begin Nov. 1, 2001.
"The prompt interconnection of the two systems within two and
one-half months of the ETNG acquisition is indicative of Duke
Energy's focus on the East Tennessee market," said Robert Evans,
president of Duke Energy Gas Transmission. "The Gateway Expansion
provides shippers an excellent opportunity to take advantage of the
new Texas Eastern interconnects just completed with ETNG."
The ETNG system is a supplier to customers in eastern and
central Tennessee, southwest Virginia, northern Georgia and
northern Alabama. The system also includes a 1.2 Bcf/d liquefied
natural gas storage facility near Knoxville.
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