Limited

TransCanada PipeLines Limited announced late Tuesday that it plans to divest its natural gas marketing business in order to focus on its core natural gas transmission and power businesses in Canada and the northern tier of the United States. The news came almost a year-and-a-half after the company embarked upon a $3.45 billion divestiture program as part of a strategic restructuring (see Daily GPI, Dec. 9, 1999; Oct. 13, 2000).

Noting it had advised shippers earlier in the week about high linepack problems due to overproduction, reduced demand and limited storage injection capacity, Tennessee said Wednesday a systemwide OFO Balancing Alert will take effect with today’s gas day. Positive daily imbalances that exceed 2% (or 500 dekatherms, whichever is greater) over nominated volumes will be charged $15 plus an index price for each dekatherm outside of the designated tolerance. Penalties will not apply to negative imbalances. The OFO is expected to remain in effect until testing of the Bear Creek Storage Field is completed May 1. Tennessee also said that based on current and anticipated future conditions, its ban on 500 Leg receipts with a dew point higher than 20 degrees F. and without proof of processing will remain in effect through the end of May.

Growing demand and limited gas transportation capacity in theTidewater area of southeastern Virginia, northeastern NorthCarolina and southeastern Maryland prompted Columbia GasTransmission to test the market for a pipeline expansion in thatarea.

Growing demand and limited gas transportation capacity in theTidewater area of southeastern Virginia, northeastern NorthCarolina and southeastern Maryland prompted Columbia GasTransmission to test the market for a pipeline expansion in thatarea.

Northwest continued to bar any on-system balancing or bankingMonday, saying its operational flexibility was “severely limited”by storage accounts being almost full.

Conoco Canada Limited, completed the acquisition of outstandingassets associated with the purchase of Petro-Canada’s natural gasliquids (NGL) business, the company said yesterday. The additionincreases Conoco’s total net natural gas liquid production inCanada, the U.S. and Trinidad by 65%, to 105,000 bpd, and triplesnet processing capacity to 3.4 Bcf/d, while reducing per-barreloverhead and operating costs by 24%.

Reporting that linepack was heavy on its south end, Northwestsaid Monday no on-system balancing and limited off-system balancingis being allowed in that segment.

CMS Energy Corp., Marathon Ashland Petroleum LLC, and TEPPCOPartners LP. are forming a limited liability company to own andoperate part of Trunkline’s mainline that is being converted totransport refined products from the Gulf Coast region to Illinois.Each of the companies will own a one-third interest in the venture.CMS already is seeking FERC approval to convert the 720-mileportion of its pipeline from gas to refined products service.Conversion of the pipeline to liquids service is expected by theend of 2001.

NGPL deliveries today to the South Joliet (Will County, IL)interconnect with ANR will be limited due to ANR maintenance. SomeFTS secondary services are at risk of not being scheduled, NGPLsaid.