PG&E’s National Energy Group (NEG) announced the winningbidders in a recent open season for expansion capacity on its GasTransmission-Northwest (GTN) pipeline system. Two power generators,Newport Northwest LLC and Calpine, were awarded 200,000 Dth/d offirm transportation capacity that will be available in 2002. Thepipeline also is proceeding with another capacity offering thatwill convert to new firm service in 2003.

Newport is developing a 1,300-MW generating plant near Wallula,WA, and two plants of similar size at other locations in thePacific Northwest. Calpine has several generating projects inconstruction or development in the Pacific Northwest andCalifornia. The pipeline operator plans to apply to the FederalEnergy Regulatory Commission in April for permission to constructthe 2002 pipeline expansion, which will increase capacity on theGTN system to 2,900 MDth/day at its Kingsgate, BC, receipt point.NEG will request expedited approval of the expansion, so thatpartial service can begin as early as next winter, with fullservice available by summer 2002.

GTN’s upstream gas transportation partner, TransCanadaPipeLines, has indicated that it too might expand to supportgreater throughput to the Pacific Northwest and California. Uponreceipt of signed contracts with its expansion shippers,TransCanada plans to seek regulatory approval to expand its Albertaand B.C. systems upstream to ensure a matching of downstreamcapacity at Kingsgate.

NEG conducted an open season earlier this year for the 2002capacity (see Daily GPI, Feb. 21). The company said it receivedqualifying bids from about 25 companies for capacity totaling 10times the 200,000 Dth/day that NEG was offering for 2002 service.After the close of a rescission period, the NEG finalized awardsbased on the bids submitted by Newport and Calpine.

“The result of our open season indicated that the western energymarket is seeking additional pipeline capacity to serve theincreasing demand for natural gas,” said Thomas B. King, presidentof NEG’s West Region. “We want to play a role in helping to meetthat need, so we will solicit customer interest in an additionalexpansion on the GTN system with an open season beginning in Aprilfor 2003 service.” King said NEG would make a decision about thesize of a 2003 expansion based on customer response to the openseason.

The 2002 expansion will include adding 21 miles of new 42-inchdiameter pipe to the GTN system north of Spokane, WA, as well asadding new compressor units at five stations. GTN has alreadyordered equipment and begun engineering for the expansion so thatwork can begin as soon as FERC approval is secured.

With current capacity of 2,700 MDth/d, the GTN system is themost direct link between western Canadian gas supplies and thegrowing gas markets in the Pacific Northwest and California. Itincludes 1,335 miles of pipeline along a 612-mile route that beginsat the Idaho/British Columbia border, traversing northern Idaho,southeastern Washington and central Oregon, and terminates at theOregon/California border, where it interconnects with the PacificGas and Electric California intrastate pipeline system. The GTNsystem also interconnects with Tuscarora Pipeline and the WilliamsCompany’s Northwest Pipeline system, as well as several gasdistribution companies and electric generators. The proposedexpansion would add capacity to the entire length of the GTNsystem.

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