Pipelines

Vacant capacity on TransCanada PipeLines Ltd. will rise to about1.7 Bcf/d, or 24% of total capacity, by Nov. 1 as shippers ofCanadian gas production turn to transportation alternatives comingavailable to them for the first time in industry history.

Vacant capacity on TransCanada PipeLines Ltd. will rise to about1.7 Bcf/d or 24% as of Nov. 1 as shippers of Canadian natural-gasproduction turn to transportation alternatives coming available tothem for the first time in industry history.

TransCanada PipeLines Ltd. won a reprieve from a feared revenuehemorrhage but lost a battle for rights to administer strongmedicine of its own making against recurrences of the threat. In aruling on lengthy, hard-fought winter hearings, the National EnergyBoard authorized TransCanada to raise floor prices forinterruptible delivery service on excess capacity to 80% of ratesfor firm service from 50%, effective May 1. But the NEB rejectedpleas by the pipeline to decide independently on setting variableminimum charges on leftover space depending on its reading ofmarket conditions.

TransCanada PipeLines Ltd. won a reprieve from a feared revenuehemorrhage but lost a battle for rights to administer strongmedicine of its own making against recurrences of the threat. In aruling on lengthy, hard-fought winter hearings, the National EnergyBoard authorized TransCanada to raise floor prices forinterruptible delivery service on excess capacity to 80% of ratesfor firm service from 50%, effective May 1. But the NEB rejectedpleas by the pipeline to decide independently on setting variableminimum charges on leftover space depending on its reading ofmarket conditions.

Despite record drilling and high gas prices, Canadian producersstill are not managing to boost production. TransCanada Pipelinesestimates Alberta field receipts were 2% lower than expected thiswinter and ended up being essentially flat with the 12.4 Bcf/drecorded in winter 1998-99.

TransCanada PipeLines has taken the first steps in a bold planto divest $3 billion in assets in its Canadian midstream,international and refined products transportation businesses. Thecompany sold subsidiary NovaGas Canada LP’s Provost gas plant andgathering system to a subsidiary of Midcoast Energy Resources Inc.last week for an undisclosed sum and completed the sale of its PeshCreek processing complex and East Australia pipeline system earlierthis month. The total value of the two Canadian processing planttransactions comes to about $42 million.

TransCanada PipeLines has taken the first steps in a bold planto divest $3 billion in assets in the Canadian midstream,international and refined products transportation businesses. Thecompany sold subsidiary NovaGas Canada LP’s Provost gas plant andgathering system to a subsidiary of Midcoast Energy Resources Inc.yesterday for an undisclosed sum and completed the sale of its PeshCreek processing complex and East Australia pipeline system earlierthis month. The total value of the two Canadian processing planttransactions comes to about $42 million.

Affiliated pipelines Texas Eastern and Algonquin notified shippersTuesday evening that OFOs (or a Critical System Warning in Algonquin’scase) similar to those canceled Monday (see Daily GPI, Jan. 25) would go into effect later thatnight. As before, the OFOs require uniform hourly deliveries in themarket area and carry other restrictions such as no acceptance ofdue-shipper imbalance nominations. Effective today Algonquin isallowing only Primary Firm services through its Cromwell (CT)Compressor Station.

TransCanada PipeLines has shelved plans to build a 90-mileextension of its mainline system into the southern portion of theNorthwest Territories to tap a major new production area near FortLiard that is estimated to hold 5 Tcf of potential reserves. Thepipeline company said there is not enough producer interest at thistime so the project has been put on indefinite hold. However, themuch larger Mackenzie Delta pipeline project, which would extendabout 1,800 miles to the northwest, is still on the front burner.