By OGJ editors
HOUSTON, May 28 -- Anadarko Energy Services Co. signed a letter of agreement with Northern Border Pipeline Co. committing Anadarko to ship 250 MMcfd of natural gas for 10 years through the proposed Bison pipeline system.
The action would establish the subsidiary of Anadarko Petroleum Corp. as a foundation shipper, pending approval of its board. It would provide Anadarko a new outlet to diverse markets for its Powder River basin gas
"This foundation shipper commitment with Anadarko represents over 60% of the expected project capacity and is a milestone toward obtaining the necessary shipper support to advance the project," said Paul F. Miller, Northern Border vice-president and general manager.
Northern Border's wholly owned subsidiary, Bison Pipeline LLC, is conducting a binding open season for potential shippers to request firm pipeline capacity on the proposed Bison pipeline. The project consists of 289 miles of 24-in. pipeline beginning near Dead Horse, Wyo., and the facilities of Fort Union Gas Gathering LLC and Bighorn Gas Gathering LLC. It will extend in a northeasterly direction to its terminus in Morton County, ND, near Northern Border's Compressor Station No. 6.
Bison's initial capacity will be 400 MMcfd with a maximum capacity of 660 MMcfd. The projected in-service date for Bison is Nov. 15, 2010.
A segment of TransCanada Corp.'s proposed 500-mile, 42-in. Pathfinder pipeline from Wamsutter, Wyo., through Montana and North Dakota to the Northern Border mainline is to follow the same route as the proposed Bison pipeline project.
TransCanada is partial owner in the Bison project through its interest in TC PipeLines LP. The two projects are coordinating preliminary field activities as they develop commercial support (OGJ, Newsletter, Apr. 21, 2008).
