Northern Border Pipeline Co. plans to move ahead with a smaller version of an expansion/extension project that has been under federal regulatory review since 1987.
The company plans to file the scaled down project with the Federal Energy Regulatory Commission May 31 under FERC's expedited certificate procedure.
The expedited procedure would allow Northern Border to quickly begin construction if approved. But it means the company would assume all risks if future revenues fail to cover the cost.
The Northern Border system is part of the incomplete Alaska Natural Gas Transportation System (Angts). And Northern Border charges that a competing project proposed by Natural Gas Pipeline Co. of America (NGPL) would undermine its ability to complete Angts.
NGPL says Northern Border's charge is without merit. A spokesman said the Northern Border proposal limits access and competition, while at the same time delaying an important hookup.
NGPL wants to lay a $90 million, 150 mile, 30 in. line from Northern Border's terminus near Ventura, Iowa, to NGPL's Amarillo main line west of Harper, Iowa (OGJ, Feb. 19, p. 36).
NORTHERN BORDER PLAN
Northern Border's revised plans call for a $360 million project to lay 368 miles of 30 in. pipe to extend its system to Tuscola, Ill., from Ventura to move more Williston basin and Canadian gas to Midwest interconnects. One compressor station would be built on the new line.
In addition, the company wants to add five compressor stations on the existing 822 mile, 42 in. system, boosting capacity to 1.7 bcfd from 1.15 bcfd.
The plan replaces a 1987 proposal calling for 36 in. pipe and six compressor stations on the extension to Tuscola and addition of four compressor stations and added compression at two existing stations on the main line (OGJ, Nov. 23, 1987, p. 28).
Throughput capacity under the 1987 plan would have risen to 2 bcfd.
Northern Border has begun engineering and right-of-way procurement for the revised project.
Under the revised plan, the extension from Ventura to Tuscola would have a capacity of 450 MMcfd, of which 150 MMcfd has been committed to Panhandle Eastern Pipeline Co. Panhandle Eastern, meanwhile, is moving ahead with a related project to tie in its system with affiliate Texas Eastern Transmission Corp. (OGJ, Mar. 19, p. 24).
The Northern Border project, if approved by FERC on an expedited basis, could be in service as early as autumn 1991.
COMPETING WITH NGPL
Larry L. DeRoin, chairman of the Northern Border management committee, said little progress had been made in the 1987 filing with FERC. To position the project to compete with NGPL's project, he said, the management committee selected the optional expedited filing procedure.
DeRoin said Northern Border has declined NGPL's request for an interconnection at Ventura for lack of sufficient natural gas volumes there.
"The additional volumes contemplated from expansion of our existing system are committed to our extension," he said. "Moreover, we are concerned about a number of regulatory and environmental issues we feel have not been adequately addressed."
He said the NGPL project would undermine Northern Border's ability to complete the long delayed Angts. Northern Border, which originally was certified to cross Iowa and extend into Illinois, was built as the eastern leg of Angts.
Northern Border is a general partnership of Enron Corp., TransCanada PipeLines Ltd., Panhandle Eastern Corp., and Williams Cos. Inc.
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