PRIVATELY OWNED TRANSMISSION LINE PLANNED IN BRITAIN

June 25, 1990
Opening British gas utility sales to participation by private industry has sparked the first signs of competition in gas transmission. Gas Transmission U.K. Ltd. (GTUK) disclosed plans for a large diameter pipeline between Bacton terminal in East Anglia and an industrial belt along the Thames estuary. The company says everything is on schedule to file an application for the pipeline at the end of this month. The line is to be in use by mid-1993.

Opening British gas utility sales to participation by private industry has sparked the first signs of competition in gas transmission.

Gas Transmission U.K. Ltd. (GTUK) disclosed plans for a large diameter pipeline between Bacton terminal in East Anglia and an industrial belt along the Thames estuary.

The company says everything is on schedule to file an application for the pipeline at the end of this month.

The line is to be in use by mid-1993.

GTUK said the distribution system, to cost 9200 million ($336 million), is aimed at industrial customers with long term firm gas supply on a common carriage basis.

Delivery pressures are planned at more than 325 psi, which will give customers pressures required to operate large plants without costly compression.

GTUK does not plan to be a merchant company. It will stick to its role as pipeline operator so large consumers and producers can buy and sell directly with each other.

Enterprise Oil plc has taken a 25% interest in the venture.

Other U.K. gas producers and potential customers have expressed interest in taking an interest in the venture. Some negotiations have taken place, but GTUK said it is not seriously seeking other partners in the project.

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