MORE U.S. GAS PIPELINE PROJECTS SHAPING UP

Several U.S. gas pipeline projects continue to roll through the planning, permit, and contract signing phases.

Here are the latest developments:

Transcontinental Gas Pipe Line Corp. (TGPL) received approval from the Federal Energy Regulatory Commission to build its $60 million southern expansion project.
Northern Natural Gas Co. received FERC approval to expand the east leg of its system in Iowa, Illinois, and Wisconsin by 199 MMcfd and signed seven firm transportation contracts.
Northern Border Pipeline Co. asked FERC for a permit to add compression to its 822 mile system and extend it by 368 miles in Iowa and Illinois.
Wyoming-California Pipeline Co. signed 1.2 bcfd in firm transportation contracts for its 670 mile system.
FERC approved a project by Consolidated Natural Gas Co.'s CNG Transmission Corp. to build underground gas storage for utilities in the Northeast U.S.
Williams Natural Gas Co. is studying construction of a 24-26 in., 450 MMcfd line from Blackwell to Hartshorne, Okla., to link with the planned Oklahoma-Arkansas Pipeline.

The TGPL project will provide 167 MMcfd more main line capacity for 25 customers in Georgia, South Carolina, North Carolina, and Virginia during peak winter months.

TGPL, a unit of Transco Energy Co., plans to begin building the project this summer, once it gets environmental clearance. Service is to start in November. It also will ask FERC to rehear some rate design and receipt point flexibility conditions.

NORTHERN NATURAL PROJECT

The initial $75 million expansion by Northern Natural includes adding 45 miles of 30 in. main line and 4,000 hp compression from Ogden, Iowa, through the areas of Waterloo and Dubuque, Iowa, and Galena, III., to north of Janesville, Wis.

The first phase also calls for pipeline extensions to Cedar Rapids, Iowa, Madison, Wis., and to customers of Wisconsin Southern Gas Co. near La Grange, Wis. Northern Natural, an Enron Corp. division, plans to start building the first phase this summer and have it in service by the 1990 heating season.

In 1992, Northern plans to lay 5 more miles of 30 in. main line and add 2,000 hp compression. When the entire east leg expansion is complete, its capacity will be increased to 629 MMcfd from 430 MMcfd.

Northern Natural signed firm transportation contracts for the project with Northern Illinois Gas Co. 70 MMcfd, Iowa-Illinois Gas & Electric Co. 50 MMcfd, Wisconsin Gas Co. 25 MMcfd, Madison Gas & Electric Co. 38 MMcfd, Wisconsin Power & Light Co. 12 MMcfd, Centran Corp. 2.5 MMcfd, and Wisconsin Southern Gas Co. 1.5 MMcfd.

NORTHERN BORDER PLANS

Northern Border has begun a preliminary request period for transportation agreements in support of its optional certificate request with FERC. On the first day it received requests for about 2 bcfd in the extension.

The $373 million expansion/extension program, which it hopes to complete in November 1991, calls for Northern Border to build five compressor stations on its present 822 mile, 42 in. line.

It also will lay 368 miles of 30 in. pipe and construct two more compressor stations to extend the system from Ventura, Iowa, to connect with Panhandle Eastern Pipe Line Co. at Tuscola, III. (see map, OGJ, Mar 26, p. 27.)

This 450 MMcfd extension will cross four other interstate systems-ANR Pipeline Co., Natural Gas Pipeline Co. of America, Northern Natural Gas Co., and Trunkline Gas Co. Once expanded, the entire Northern Border system will be able to transport 1.7 bcfd of Canadian, Williston basin, and Great Plains Coal Gasification Project gas.

The company has proposed that the project's cost be rolled in with present tariff prebuild costs. It says this rate structure will reduce the cost to current firm transportation customers by about 6% and yield a uniform firm service price from the Canadian border of about 34/Mcf at Ventura and 49/Mcf at Tuscola.

WYCAL CONTRACTS

All of the firm service contracts disclosed by Costal Corp. unit Wycal are for at least 15 years on the proposed 670 mile system from Wyoming to California.

Among those signing on are Union Pacific Fuels Co. 125 MMcfd, British Columbia Petroleum Corp. 120 MMcfd, Southwest Gas Corp. and city of Long Beach 100 MMcfd each, Global Gas Corp. 81 MMcfd, and Anschutz Corp 60 MMcfd.

Wycal also signed con. tracts for 50 MMcfd each with Pacific Gas & Electric Co., Southern California Edison Co., Los Angeles Department of Water & Power, LFC Gas Co., Gas Ventures Inc. of Colorado, Geological Advisory Services Inc., Industrial Gas Supply Inc., Natural Gas Clearinghouse, Pacific Western Energy Corp., and Sunrise Energy Co.

In addition, it reached agreements with Coastal Oil & Gas Corp. and Terra Neva Energy for 30 MMcfd each, Encor Energy 25 MMcfd, Saguaro Power 22 MMcfd, Camchino Energy Corp. 18 MMcfd, and Nevada Power Co. 10 MMcfd.

The contracts stemmed from a 45 day open season Wycal conducted under FERC rules. Wycal Pres. Charles Oglesby said the company is considering a system expansion to meet market demand.

CNG PROPOSAL

Under plans approved by FERC, CNG will build underground gas storage in 1991 to provide 38 MMcfd of firm storage service to six gas retailers in the U.S. Northeast. The companies are Colonial Gas Co., Long Island Lighting Co., Elizabethtown Gas Co., New Jersey Natural Gas Co., Central Hudson Gas & Electric Corp., and Penn Fuel Gas Inc.

CNG also will build 41 MMcfd of storage for four of those firms and 20 MMcfd for Texas Eastern Transmission Corp. starting in 1992.

In 1989, FERC approved earlier phases of the project that provide as much as 315 MMcfd of winter gas sales and firm storage to Associated PennEast Customers (APEC), a group of utilities mostly in New York and New Jersey.

WILLIAMS PLANS

Williams Natural Gas Vice Pres. Jim Miller told a group of producers in Tulsa of plans for a 180 mile link between a Williams compressor station at Blackwell and the Oklahoma-Arkansas line at Hartshorne. If built, he said, the link will be a joint project with Panhandle Eastern.

The new line's 450 MMcfd initial capacity will be expandable to 600 MMcfd. The project has not been approved by either company, Miller said, and will be in service no sooner than mid-1992.