TETCO holds open season for leased pipeline capacity

Texas Eastern Transmission Corp. (TETCO) has begun an open season for the natural gas pipeline capacity it recently leased from Natural Gas Pipeline Co. of America in a reciprocal deal aimed at optimizing gas shipments for the two companies (OGJ, Apr. 24, 2000, p. 34).

TETCO calls its program Enhanced Spectrum, while NGPL calls its HubAmerica. Enhanced Spectrum is a "low-cost alternative to new pipeline construction" for the transport of gas from Chicago to the US East Coast. TETCO's open season will end June 15.

Under the capacity lease agreement between TETCO and NGPL�a wholly owned subsidiary of Kinder Morgan Inc.�Enhanced Spectrum will allow shippers to move gas from Chicago to the East Coast "on a seamless, low-cost basis," said TETCO.

"Enhanced Spectrum continues to take advantage of the existing pipeline infrastructure, using capacity turnback on TETCO and back-haul capacity on NGPL, to provide transportation options without construction of costly new facilities and also to allow contract terms significantly shorter than would be required for new construction," said the firm.

Robert B. Evans, president of Duke Energy Gas Transmission, said, "Enhanced Spectrum...combines competitive rates with the least environmental impact. We believe that customers seeking firm capacity with a 2000 in-service date, to coincide with the in-service date of Alliance Pipeline, will be particularly interested in Enhanced Spectrum."

Service under Enhanced Spectrum will available beginning Nov. 1 to coincide with the start-up of Alliance.

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