Eastern

The coming Foothills/Northern Border expansion will impact gasprices and gas flows in several ways, according to a new report byPIRA Energy Group. Foothills/Northern Border will carry 700 MMcf/dfrom Alberta to the Midwest. Completion is expected Nov. 1.

Texas Eastern Transmission (Tetco) on Tuesday submitted to FERCan offer of settlement that it insists will save pipeline customersmore than $260 million over the next five to six years.

The first phase of the Dauphin Island Gathering System (DIGS)expansion was put in service last week, making it the first easternGulf of Mexico pipeline to transport deep-water production toonshore facilities in Alabama. When complemented by the secondphase of its expansion, DIGS – a project of the Dauphin IslandGathering Partners (DIGP) – will have the capability to deliver upto 1.1 Bcf/d to onshore markets and pipelines in south Alabama andsouth Louisiana. The system will have hub platform capabilities atmultiple locations on the Outer Continental Shelf and in deep-waterareas. It is expandable with the addition of compression.

Columbia Natural Resources (CNR) has expanded operations toeastern Canada with the purchase of an interest in gas and oilwells and undeveloped property in Ontario. The US$3.6 millionacquisition from Paragon Petroleum of Calgary includes a 50%interest in 24 wells and 100% of 5,000 acres of undevelopedproperty. The owner of the other 50% of the wells is CanEnercoLtd., which will market gas production. “Our move into Canada isthe second expansion of CNR’s base of operation in less than ayear,” said W. Henry Harmon, CEO. CNR’s $101 million purchase ofAlamco Inc. last August increased reserves by 25% and expandedcompany operations into southern Kentucky and northern Tennessee.