Units of Tenneco Gas and Columbia Gas System have agreed with Arkla Inc. to pay $143.8 million for interests in gas pipelines that will move 500 MMcfd into their systems from the Arkoma basin in eastern Oklahoma and western Arkansas.
Among other gas pipeline developments in the U.S. last week:
- ANR Pipeline Co. will begin providing firm and interruptible service on its Lebanon extension Aug. 1.
- Transwestern Pipeline Co. filed a rate case settlement with the Federal Energy Regulatory Commission to convert to a transportation pipeline serving the California market.
- A New York state administrative law judge recommended that Empire State Pipeline be approved by the State Public Service Commission.
TENNECO, COLUMBIA DEAL
As part of the arrangement with Tennessee Gas Pipeline and Columbia Gulf Transmission Co., Arkla will lay a 330 MMcfd interconnect between its Mississippi River Transmission (MRT) line and the eastern terminus of the Ozark Gas Transmission System near Searcy, Ark.
In addition, a partnership of Tenneco, Columbia, Texas Oil & Gas Corp., and Oneok Inc. agreed to expand its Ozark Gas Transmission System. Tenneco and Columbia will each pay $3 million as their share.
The agreement also calls for Tenneco and Columbia to pay a total $40.8 million for an undivided joint ownership interest in Arkla's new AC pipeline from Wilburton, Okla., to Glendale, Ark. The two companies will jointly own 170 MMcfd of capacity in the AC line, which is being built and is scheduled for Nov. 1 completion.
They also will lay the $97 million GI pipeline connecting Arkla's MRT system at Glendale with Tennessee's so-called 800 line near Isola, Miss., and with Columbia Gulf's main line at Inverness, Miss. Tennessee and Columbia Gulf will each have 250 MMcfd of capacity in the 92 mile, 30 in. GI line.
Pending approval, Tenneco says the entire group of facilities should be in operation by fall 1992.
"We're a little late getting into the game," said Brady McConaty, Tenneco's manager of supply projects, "but we feel we have the most viable option to get gas out of the Midcontinent area to the Northeast."
ANR'S PLANS
The Lebanon extension consists of a 30 in. line from ANR's mainline system near Muncie, Ind., to Darke County, Ohio, where it will connect with a 36 in. line to Lebanon.
The Muncie-Darke County span is complete. The Darke County-Lebanon span, jointly owned by ANR and Panhandle Eastern Corp., is about 80% complete.
ANR will have total initial capacity on Lebanon of 240 MMcfd, to be increased to 400 MMcfd with installation of compression in 1991. It will be expandable to 600 MMcfd.
Completion of the Lebanon extension, ANR says, will enable it to have U.S. and Canadian gas delivered directly to Lebanon, Ohio. It also will enable shippers to use ANR's underground storage in Michigan.
The Lebanon extension is part of FERC's open season settlement for gas pipeline construction to serve the U.S. Northeast.
REGULATORY ACTION
The FERC rate case settlement is, Transwestern said, part of the company's transition from traditional merchant to pipeline.
Transwestern, as transporter, also agreed with shipper Southern California Gas Co. to extend their service contract through 2005.
The settlement includes a firm transportation brokering program, along with zone rates and other tariff changes.
Transwestern, an Enron Corp. unit, says capacity brokering will allow more efficient allocation of firm capacity.
EMPIRE STATE RULING
The 150 MMcfd Empire State Pipeline will serve West and Central New York. Sponsored by Rochester Gas & Electric Corp. and units of Coastal Corp., Houston, and Union Enterprises Ltd., Toronto, it will run 155 miles from Grand Island to Syracuse, N.Y.
A Coastal official says the New York judge's ruling will enable construction to start this fall, pending other regulatory clearance.
Completion is scheduled for spring 1991.
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