ANR receives 2 bcfd of shipper commitments for SEML

TransCanada Corp.’s ANR Pipeline system has secured almost 2 bcfd of firm natural gas transportation commitments on its Southeast Main Line (SEML) for an average term of 23 years, with roughly 1.25 bcfd beginning this year and the balance next. The company said it is reviewing options for further expansion of SEML.

SEML will transport Utica and Marcellus shale gas to points north and south on the ANR system, including 600 MMcfd as part of a reversal project on SEML. This project will enhance existing bidirectional flow capability, allowing increased shipment of gas south to the Gulf Coast.

TransCanada noted that the SEML commitments follow other ANR expansions over the past year, including reversal of the Lebanon Lateral in western Ohio, the planned addition of compression at its station in Sulphur Springs, Ind., and expansion of its interconnect with the Rockies Express Pipeline (REX) at Shelbyville, Ind. ANR’s two-way Shelbyville interconnect has a design capacity of 560 MMcfd, which was fully contracted as of Mar. 1.

REX held a nonbinding open season earlier this year to move gas out of the Appalachian production basin westward through its Zone 3, reversing its flow (the East-to-West Project). The open season was held to assess market demand for an expansion to move up to 2.5 bcfd from physical receipt points in Zone 3 to available delivery points in Zone 3. Zone 3 runs from the Clarington Hub in eastern Ohio to Mexico, Mo. Its initial design capacity is 1.8 bcfd. The US Federal Energy Regulatory Commission approved the reversal in December.

When REX announced the open season it anticipated an in-service date of Mar. 1, 2016. Tallgrass Energy, which own 50% of REX, did not respond to requests regarding open season results before press time. The open season closed Feb. 12.

Contact Christopher E. Smith at chriss@ogjonline.com.

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