Portland Natural Gas Transmission System will hold an openseason from Oct. 1 to Oct. 22 on its PNGTS Pipeline to elicitinterest regarding new transportation services such as access to aninterconnect with Algonquin’s HubLine project, and consequently, tothe lucrative Boston power generation market.

“In addition to delivery points along the PNGTS mainline and itsinterconnections with Tennessee Gas Pipeline, in 2002 PNGTSshippers will have direct access to the Algonquin system via theproposed HubLine project,” said Derek Henwood, PNGTS president. Thecompany said in light of the proposed HubLine extension, partiescan select a proposed interconnection at Salem, MA as a receipt ordelivery point. HubLine is a proposed $300 million, 70-milepipeline extending from a connection with the Joint Facilities linein Plainstow, NH and hooking up with Algonquin near Boston.

Additional volumes subscribed could lead to lower rates forcustomers, said John Flumerfelt, a PNGTS spokesman. “We’revirtually fully subscribed right now for our certificated capacityof 178,000 Dth/d, but if the market asks for more, we canre-engineer and expand the system to accommodate that need.” Thecompany said it hopes to achieve a target rate of $0.35/Dth withadded volumes. Its current recourse rate for firm transportationcustomers is $0.6270/Dth.

PNGTS, which began commercial operations last spring (see DailyGPI, Feb. 26), currently providestransportation service from an interconnection with TransCanadaPipeLines (through the TQM system) to interconnections with TennesseeGas Pipeline in Haverhill and Dracut, MA.

With its main competitor, the Maritimes & Northeast Pipelineproject (M&NE), set to begin operations in November, PNGTS istrying to attract as many customers as possible. M&NE hasalready held an open season for its customers who want to send gasthrough HubLine. Duke, the operator of M&NE, has not releasedthe results of that open season yet.

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

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