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Chicago-to-Dawn Services for Sale

Chicago-to-Dawn Services for Sale

In an effort to compete with newcomer Vector Pipeline, Coastal's ANR Pipeline, Great Lakes Gas Transmission and TransCanada PipeLines have joined forces to provide a hub-to-hub transportation service between Chicago, IL, and Dawn, ON.

The three companies announced plans last week to utilize capacity on their three systems for the service for the entire winter, commencing Nov. 1 and continuing through March 31, 2001. Each of the companies will offer transportation on its respective system. ANR will provide transportation between Chicago and Farwell, MI, for a rate of 5 cents/Dth/d plus fuel and the ACA surcharge. Great Lakes will provide service from Farwell to St. Clair, MI, for a rate of 5 cents/Dth/d plus fuel and the ACA surcharge. From St. Clair to Dawn, service will be provided by TransCanada for a biddable firm or interruptible rate as low as 2 cents/Dth/d plus fuel and pressure charges. The total cost for service on all three pipelines, including fuel, is 23 cents/Dth/d, which is about a nickel less than Vector's recourse rate but still 11 cents more than the current winter spread between the two points according to a gas marketer. Vector is expected to begin flowing up to 720 MMcf/d of gas from Chicago to Dawn on its new pipeline on Dec. 1 (see NGI, Oct. 9; July 3).

ANR, Great Lakes and TCPL said no new facilities will be required to provide the services, which will help to link two of the pre-eminent gas hubs in North America. Depending upon market interest, however, additional Chicago-to-Dawn services may be provided in the future. For example, winter-only and annual-capacity services may become available, the three pipeline companies said.

For additional information contact Jan Connelly at ANR, (313) 496-3659; the Great Lakes marketing hotline, (888) 275-3611; and TransCanada's Iain MacRae, (416) 869-2123.

Rocco Canonica

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