The first major construction activity kicked off this week forVector Pipeline, the project partners announced yesterday. Theproject, which would make 1 Bcf/d of transport available fromwestern Canada to Chicago, is on time to start service in October.

Work began on the horizontal directional drilling under DeepRiver in Lake County, IN, along with preparations to completeconstruction of a segment though an adjacent golf course earlierthis week. Construction contracts for completion of the Deep Riverand St. Clair River directional drills, in addition to the golfcourse pre-build near Deep River were awarded to Murphy Bros. Inc.of East Moline, IL.

The partners said that by the beginning of February, directionaldrill activity would begin at the St. Clair River where Vectorcrosses into Canada towards its final destination at Dawn, ON.Requests for bids for remaining mainline construction were issuedon Jan. 17 with a decision on the successful contractors expectedin April 2000. Construction on the mainline pipe is targeted tobegin in early May.

“This is a major milestone for Vector,” said Juri Otsason,Vector vice president. “We’re pleased to see the first constructionactivity begin following the challenging extensive marketing,planning and regulatory effort that has taken place over the lasttwo years.”

Last November, FERC denied requests for further rehearings and alsogranted Vector’s request to amend its certificate to allow relocationof the Michigan compressor station from Milford Township to nearbyHighland Township, MI. These decisions allowed Vector to commenceconstruction on a timely basis. Vector was the first of severalproposed western Canada to Chicago pipeline projects to win final FERCapproval. The $447 million project won the approval in May of lastyear (see Daily GPI, May 27).

However, a new entrant to the game is already setting up tochallenge Vector. The Coastal Corp.’s ANR Pipeline, Great Lakes GasTransmission and TransCanada PipeLines announced availability ofcapacity on their systems for hub-to-hub transportation betweenChicago and Dawn, ON. The collaboration was formed earlier this month(see Daily GPI, Jan. 10) and if theircapacity offering generates enough interest among shippers, the threecould make the offering every winter, creating a competitor to Vector.

The Vector Pipeline is a joint venture of Calgary-based EnbridgeInc., lead sponsor for the project, Detroit-based MCN Energy GroupInc. and Westcoast Energy Inc. of Vancouver, British Columbia.Pipeline capacity can be cost-effectively expanded to 1.5 Bcf/d.

©Copyright 2000 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.