Trunkline Gas Co. has indicated it has “entered into discussionswith several parties” to either sell or spin down one-third of itsmainline system – about 720 miles – for the purpose of convertingthe facilities for transporation of refined petrolum products.

Trunkline first proposed spinning down this segment of itspipeline [Line 100-1], which spans from Illinois to Louisiana, toan affiliate, Trunkline A.P. Pipeline Co., in July 1998 – when itstill was owned by Duke Energy. Since then, however, Trunkline’sownership has changed hands, with CMS Energy buying it in March.

“Trunkline is in advanced negotiations, which would result inthe conversion of these pipeline facilities for the transportationof refined petroleum products. Negotiations will be concludedwithin the near future…..,” wrote Trunkline President and CEOChristopher A. Helms in an Oct. 27 letter to FERC. Depending on theprogress of the negotiations, he said the pipeline either willamend its July 1998 proposal by Dec. 15 or it will “withdraw itsapplication” altogether.

John Barnett, a spokesman for CMS Energy, declined to say howmany parties Trunkline was negotiating with, but he did say therewere more than one. Nor would he confirm whether Trunkline wasplanning to sell the pipeline facilities or spin them down .

Under the 1998 proposal, Trunkline A.P. would oversee theconversion of the facilities to transport ethane and hydrocarbonvapors to the Gulf Coast from the proposed Aux Sable LiquidsProducts processing plant, which is being constructed at theterminus of the 1.4 Bcf/d planned Alliance Pipeline. The spin-down,as original was proposed, would reduce Trunkline’s system capacityof about 1,810 MDth/d by 255 MDth/d, or by 14%.

Trunkline cited years of underutilization, deep discounting andthe the likelihood of continued decontracting when it announced itsintention to shed itself of the 26-inch diameter mainline.

Trunkline shippers are opposed to the pipeline’s move. Manyconsider Trunkline’s system still to be a key link in the Midwestgas pipeline grid, even in light of all the new pipelineconstruction coming into that market.

Susan Parker

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