Calgary-based Enbridge Inc. stepped forward last week at a meeting of the Wyoming Natural Gas Pipeline Authority with a bold plan for a Wyoming-to-Chicago citygate gas pipeline proposal. Company officials said the 1 Bcf/d project most likely would not be in place before 2007.

Growing gas supply and limited pipeline takeaway capacity have historically been a problem in the Rockies, but over the last couple of years basis differentials between spot market points such as Opal, WY, and the Henry Hub in Louisiana widened to record levels. The situation got so bad last year that the state of Wyoming kick-started the dormant Wyoming Natural Gas Authority and gave it $1 billion in bonding authority and a mandate to increase state gas royalty values through greater pipeline access, increasing supply and improved basis differentials. It’s a tall order, but there are pipeline companies willing to come to the state’s aid.

Enbridge said it’s willing to do the job on its own or with the help of the state or other pipeline partners. It’s premature to say exactly how the project will unfold, Ron Brintnell, director of gas pipeline development and Calgary-based Enbridge, said in an interview with NGI. Brintnell presented the plan at the pipeline authority’s meeting on Tuesday.

“There certainly are other companies pursuing projects out of the Rockies, but we’re the only one that we’re aware of that is looking at building one directly to Chicago.”

Enbridge spokesman Jim Rennie said the company is beginning to identify the interests of producers and potential shippers.

“We’re pretty spread out across Canada and the United States in terms of having assets,” Rennie noted. “We’ve been looking at a lot of areas for opportunities — everything from northern Canada to the East Coast, to the Gulf Coast and certainly the Rocky Mountain area. We think we’ve identified a need and an opportunity, an area of growing gas volumes and pretty much full takeaway capacity now so that’s what we are pursuing.”

Enbridge currently has no natural gas assets in the Rocky Mountain region, but has a major interest in the Frontier oil pipeline in the Rockies. It also is a 50% owner in Alliance Pipeline and is a 45% owner and operator of Vector Pipeline. Enbridge is Canada’s largest natural gas distribution company, providing gas to 1.6 million customers in Ontario, Quebec and New York state. It also is developing a gas distribution network in New Brunswick.

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