In an effort to compete with newcomer Vector Pipeline, Coastal’sANR Pipeline, Great Lakes Gas Transmission and TransCanadaPipeLines have joined forces to provide a hub-to-hub transportationservice between Chicago, IL, and Dawn, ON.

The three companies announced plans yesterday to utilize capacityon their three systems for the service for the entire winter,commencing Nov. 1 and continuing through March 31, 2001. Each of thecompanies will offer transportation on its respective system. ANR willprovide transportation between Chicago and Farwell, MI, for a rate of5 cents/Dth/d plus fuel and the ACA surcharge. Great Lakes willprovide service from Farwell to St. Clair, MI, for a rate of 5cents/Dth/d plus fuel and the ACA surcharge. From St. Clair to Dawn,service will be provided by TransCanada for a biddable firm orinterruptible rate as low as 2 cents/Dth/d plus fuel and pressurecharges. The total cost for service on all three pipelines, includingfuel, is 23 cents/Dth/d, which is about a nickel less than Vector’srecourse rate but still 11 cents more than the current winter spreadbetween the two points according to a gas marketer. Vector is expectedto begin flowing up to 720 MMcf/d of gas from Chicago to Dawn on itsnew pipeline on Dec. 1 (see Daily GPI, Oct. 4; June 29).

ANR, Great Lakes and TCPL said no new facilities will berequired to provide the services, which will help to link two ofthe pre-eminent gas hubs in North America. Depending upon marketinterest, however, additional Chicago-to-Dawn services may beprovided in the future. For example, winter-only andannual-capacity services may become available, the three pipelinecompanies said.

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

©Copyright 2000 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.