Portland Natural Gas Transmission System is holding an open season through Oct. 22 on its PNGTS Pipeline to elicit interest regarding new transportation services such as access to an interconnect with Algonquin’s HubLine project and consequently, to the lucrative Boston power generation market.

“In addition to delivery points along the PNGTS mainline and its interconnections with Tennessee Gas Pipeline, in 2002 PNGTS shippers will have direct access to the Algonquin system via the proposed HubLine project,” said Derek Henwood, PNGTS president. The company said in light of the proposed HubLine extension, parties can select a proposed interconnection at Salem, MA, as a receipt or delivery point. HubLine is a proposed $300 million, 70-mile pipeline extending from a connection with the Joint Facilities line in Plainstow, NH, and hooking up with Algonquin near Boston.

Additional volumes subscribed could lead to lower rates for customers, said John Flumerfelt, a PNGTS spokesman. “We’re virtually fully subscribed right now for our certificated capacity of 178,000 Dth/d, but if the market asks for more, we can re-engineer and expand the system to accommodate that need.” The company said it hopes to achieve a target rate of $0.35/Dth with added volumes. Its current recourse rate for firm transportation customers is $0.6270/Dth.

PNGTS, which began commercial operations last spring (see NGI, March 1), currently provides transportation service from an interconnection with TransCanada PipeLines (through the TQM system) to interconnections with Tennessee Gas Pipeline in Haverhill and Dracut, MA.

With its main competitor, the Maritimes & Northeast Pipeline project (M&NE), set to begin operations in November, PNGTS is trying to attract as many customers as possible. M&NE has already held an open season for its customers who want to send gas through HubLine. Duke, the operator of M&NE, has not released the results of that open season yet.

Shippers interested in FT may obtain information and a bid form from Dave Morgan at PNGTS (603) 559-5503 or e-mail at dmorgan@pngts.com.

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