Expand

Honeoye Storage Corp. has received FERC approval to expand itswestern New York sandstone storage facility to provide anadditional 1.8 Bcf of firm service capacity under market-basedrates. Honeoye plans an open season to start before the end of Juneand run through July.

FERC has sent Dominion Resources and its merged partner,Consolidated Natural Gas (CNG), back to the drawing board to expandthe scope of the pipeline marketing affiliate rule to apply to allenergy affiliates within their corporate family.

Despite current plans to reactivate LNG imports and expand the Cove Point LNG plant, Columbia Energy Group has decided the Lusby, MD-based facility does not fit into its core group of assets. The company announced plans last week to sell Cove Point and a related pipeline to Williams Gas Pipeline for $150 million. The sale is subject to clearance under the Hart-Scott-Rodino Act but should be completed by July 2000, the companies said.

El Paso Energy’s Southern Natural Gas pipeline last week filedan application at FERC seeking to expand its South Main system byabout 336 MMcf/d to serve utility power plants in North Carolinaand other southeastern markets.

Despite current plans to reactivate LNG imports and expand theCove Point LNG plant, Columbia Energy Group has decided the Lusby,MD-based facility does not fit into its core group of assets. Thecompany announced plans yesterday to sell the LNG facility andrelated pipeline to Williams Gas Pipeline for $150 million. Thesale is subject to clearance under the Hart-Scott-Rodino Act butshould be completed by July 2000, the companies said.

El Paso Energy’s Southern Natural Gas pipeline has filed anapplication at FERC seeking to expand its South Main system byabout 336 MMcf/d to serve utility power plants in North Carolinaand other southeastern markets.

The Midwest Energy Hub, a previously announced joint partnershipbetween Peoples Energy and Enron North America designed to expandPeoples’ existing market hub, is now up and running. Despite stillwaiting for approval from the Illinois Commerce Commission (ICC),the new company began offering services to Chicago-area customerslast week. The original agreement between the two companies wasforged last October (see NGI, Oct. 10).

Egan Hub Partners, a subsidiary of NiSource, filed a request atFERC recently to expand the operating capacity of its existingstorage facility in Acadia Parish, LA from 15.5 Bcf to 21 Bcf. Thecompany wants a FERC decision by Sept. 1 so that some or all of theexpansion can be online during the 2000-2001 heating season. Egansaid the expansion is necessary because of the large number ofrequests from customers for additional storage service. It expectsthat the expanded capacity will be fully subscribed and says it canprovide the identity of customers with which it is discussingincremental service, if the Commission requests such information.The company’s two existing salt dome caverns will be enlarged from7.75 Bcf to 10.5 Bcf and compression will be added, boostingdeliverability from 750 MMcf/d to 800 MMcf/d.

The Midwest Energy Hub, a previously announced joint partnershipbetween Peoples Energy and Enron North America designed to expandPeoples’ existing market hub, is now up and running. Despite stillwaiting for approval from the Illinois Commerce Commission (ICC), thenew company began offering services to Chicago-area customers earlierthis week. The original agreement between the two companies was forgedlast October (see Daily GPI, Oct. 5).