Upstream

Westcoast Energy said its St. Clair Pipelines subsidiary filedthe last major component required for the Millennium Pipelineproject yesterday with the National Energy Board in Canada. Thecompany filed an application for a $165 million pipeline that wouldlink Union Gas’ Dawn Hub in Ontario to lake crossing facilities tobe built by TransCanada. TransCanada filed an application for thelake crossing facilities earlier this week. St. Clair’s 50-mileMillennium West Pipeline would deliver about 700 MMcf/d of gas toPatrick Point on the shores of Lake Erie.

Alliance CEO Dennis Cornelson reiterated yesterday he’s not theslightest bit concerned about upstream gas supply problems puttinga damper on Alliance throughput once the the pipeline isconstructed. “Thinking about that very issue over the years, Ithink that it’s clear that with the higher gas prices that arebeing realized and the relatively low prices for oil at this timethat there will be real focus on natural gas exploration anddevelopment over the next several years.

The Canadian inlet to the proposed Portland Natural GasTransmission System has received approval from the National EnergyBoard, in time for completion on schedule this Nov. 1. Titled thePNGTS Extension, the route will be built by Trans Quebec &Maritimes Pipeline Inc. from a connection with the TransCanadasystem in eastern Quebec at Lachenaie to an exit into New Hampshireat East Hereford.

The upstream Canadian portion of the Portland Natural GasTransmission Project – the PNGTS Extension, which will link theU.S. pipeline with TransCanada PipeLines via an extension of theTrans Qu‚bec & Maritimes — received a favorable environmentalreview from Canada’s National Energy Board. The NEB concluded the132-mile extension is “not likely to cause significant adverseenvironmental effects, provided that the mitigative measuresidentified during the public hearing are implemented and enforced.”The NEB submitted its Comprehensive Study Report on the project tothe federal Minister of Environment and to the CanadianEnvironmental Assessment Agency last week