Trunkline Gas, Texas Eastern Products Pipeline Co. LP (TEPPCO)and Marathon Ashland Petroleum LLC have called on FERC to actquickly on an application that seeks to convert 720 miles ofTrunkline’s mainline gas transmission system to a liquid petroleumproducts pipeline.

Absent prompt Commission action, they say their plans for theproposed Centennial Pipeline project — which is counting on the26-inch diameter Trunkline pipeline to be its “backbone” — wouldbe dealt a serious blow. Centennial, which would transport refinedproducts from the Gulf Coast region to Illinois, is a joint ventureof CMS Energy Corp. (parent of Trunkline), TEPPCO and MarathonAshland. Each of the companies has a one-third interest in theventure.

In its application filed last March, Trunkline urged FERC toapprove the abandonment of part of its gas mainline facilities byNov. 1, 2000 in order to complete the conversion to a products lineand meet the anticipated in-service date of Jan. 1, 2002. “The Nov.1 date has come and gone. Consequently, there now is a more urgentneed for the Commission to act promptly,” wrote Trunkline PresidentChristopher A. Helms, TEPPCO Chairman William Thacker and GaryHeminger of Marathon Ashland in a letter to FERC Chairman James J.Hoecker.

The Centennial partners said the Commission must issue an orderby no later than Feb. 1, 2001 for Centennial to meet its projectedin-service date.

If Centennial isn’t in service by then, the Midwest will bedeprived of “another supply of gasoline” for the summer 2002driving season and of “another supply of heating oil” during the2002 winter heating season the executives said in their Dec. 4letter.

They noted that the “sharp increases” in gasoline prices in theMidwest last summer even prompted Reps. John Dingell (D-MI) andMichael Oxley (R-OH) to request “expeditious consideration” of theTrunkline application.

If FERC gives the go-ahead for conversion of the gas pipeline,the joint venture plans to build a 70-mile, 24-inch diameterpipeline connecting TEPPCO’s facility in Beaumont, TX, with thestart of the Trunkline segment extending from Longville, LA, toBourbon, IL. The converted products line, would intersect TEPPCO’sexisting mainline near Lick Creek, IL, where a newtwo-million-barrel refined petroleum products storage terminal isto be built.

Trunkline shippers have been opposed to the line conversion. Manyconsider Trunkline’s system still to be a key link in the Midwest gaspipeline grid, even in light of all of the new pipeline constructioncoming into that market. But CMS contends the gas industry no longerneeds the pipeline because of changes in gas service in the Midwest— specifically, the trend away from long-term firm transportationcontracts. (see Daily GPI, March 10).

The conversion of the gas pipeline, which has an estimated netbook value of $10.2 million, would reduce the mainline marketcapacity of Trunkline’s system by 255 MDth/d, or 14%, to 1,555MDth/d, according to Trunkline.

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