This is interesting....
 
-----Original Message-----
From: Lamadrid, Victor 
Sent: Friday, October 05, 2001 8:23 AM
To: Allwein, Robert; Alvarado, Kevin; Arteaga, Airam; Boudreaux, Shanna; Carter, Tamara; Collins, Joann; Garcia, Clarissa; Gillespie, Steve; Halstead, Lia; Homco, Meredith; Loocke, Kelly; Loving, Scott; Ordway, Chris; Prudenti, Dan; Ramirez, Robert; Sanchez, Christina; Wood, Tracy
Subject: FW: Maritimes Moves Toward Expansion; U.S. Shippers Request 1.3 Bcf/d


 
-----Original Message-----
From: Jaquet, Tammy 
Sent: Thursday, October 04, 2001 9:07 PM
To: Lamadrid, Victor; Superty, Robert; Calcagno, Suzanne
Subject: Maritimes Moves Toward Expansion; U.S. Shippers Request 1.3 Bcf/d



NGI's Daily Gas Price Index 
published : October 5, 2001



Maritimes Moves Toward Expansion; U.S. Shippers Request 1.3 Bcf/d 


Maritimes & Northeast Pipeline (Maritimes) said it received nominations for 1.7 Bcf/d of new transportation capacity on the Canadian portion of its pipeline system and 1.3 Bcf/d on the U.S. portion in an open season for its proposed $380 million Phase IV expansion project. Local distribution companies, gas-fired electric generators and third-party marketers were among those submitting substantial requests for transportation services, indicating a sizable market for natural gas reserves from eastern Canada, Maritimes said. 

That sizable market has prompted rival El Paso Corp. to plan an entirely new offshore subsea pipeline that would bypass Maritimes and run from Sable Island to New York, New Jersey and Pennsylvania (see Daily GPI, Oct. 3). El Paso said earlier this week the $1.6 billion Blue Atlantic Transmission System would be 750 miles long and carry up to 1 Bcf/d of gas to U.S. markets starting in the first quarter of 2005. 

With pipeline already in place and an open season completed, Maritimes has a firm lead in this race to add capacity. Its Phase IV project would begin service about the same time. Canadian markets have requested deliveries along the mainline and laterals to Point Tupper, Halifax and Saint John. The U.S. nominations requested deliveries of substantial volumes into Algonquin Gas Transmission Co.'s proposed HubLine interconnection in Beverly, MA. The majority of the nominations seek services beginning in the 2004 to 2006 time frame. 

"The Maritimes system was designed and constructed to accommodate the anticipated development of new natural gas fields," said Philip Knoll, president of Maritimes & Northeast Pipeline LP. "Given our ability to quickly and cost-effectively expand the system primarily through compression, we can be ready to deliver new supplies as early as 2004." The company also expects to add some looping line in Canada for the project. 

Earlier this year, Maritimes and PanCanadian Petroleum signed agreements to transport up to 400 MMcf/d of gas from PanCanadian's Deep Panuke project, offshore Nova Scotia. To transport the PanCanadian volumes, Maritimes will invest C$590 million to expand its capacity to 1 Bcf/d, nearly doubling the existing system capacity. 

Maritimes will now work with the responding parties to determine the need for additional pipeline and compression facilities for the expansion. It expects to file applications with government agencies in both the United States and Canada later this year.