Groups led by Arkla Energy Resources (AER) and Panhandle Eastern Corp. are proceeding with plans to construct gas pipelines with capacities of 1 bcfd each to serve the Arkoma basin.
Panhandle said CMS Energy Corp., National Fuel Gas Co., and The Williams Cos. have joined its Oklahoma-Arkansas Pipeline Co. Oklahoma-Arkansas plans a 352 mile, 30 and 36 in. pipeline from Pittsburg County, Okla., to Tate County, Miss.
Other participants in the line, through the basin's producing fairway via Bald Knob, Ark., are International Paper Co. and Nicor Inc.'s Reliance Pipeline Co. (OGJ, Nov. 6, 1989, p. 25).
Arkla, meanwhile, is taking delivery of pipe and starting river crossing work. It hopes to begin construction this spring, pending regulatory approval.
Arkla's 225 mile, 36 and 42 in. Line AC will stretch from a compressor station west of Wilburton through nonproducing territory to Glendale, Ark. (see map, OGJ, Mar. 6, 1989, p. 22).
AER's share of the facilities, including 19,250 hp of compression at Malvern, Ark., will cost $240 million.
Arkla late last year placed in service an initial segment between Malvern and Glendale.
Arkla will own 45% of the system, Transco Energy Co.'s Texas Gas Transmission Corp. 30%, and Coastal Corp.'s ANR Pipeline Co. 25%.
Meanwhile, Arkla proposed to sell ANR an interest in part of its pipeline system in Arkansas and Oklahoma under a proposed agreement with the Federal Trade Commission.
FTC is accepting comments on the plan until Mar. 9.
PIPELINE DEVELOPMENTS
Texas Gas sought Federal Energy Regulatory Commission authority to acquire from Arkla for $72.2 million an interest in Line AC equal to 300 MMcfd of capacity.
Texas Gas also filed to construct 15,900 hp of compression at the Line AC terminus at Glendale and a 69 mile, 30 in., 500 MMcfd crossover pipeline from Glendale eastward to Texas Gas's main line near Cleveland, Miss. Total cost is $83.6 million.
An Oct. 31, 1989, AER filing gave Texas Gas the opportunity to buy as much as 350 MMcfd of gas under a 10 year sales service agreement with AER.
The agreement permits Texas Gas to convert the sales service to firm transportation on AER's system.
The Arkla-Texas Gas project boosts proposals filed in January to serve the U.S. Northeast by Consolidated Natural Gas Co. and units of Transco and Coastal (OGJ, Feb. 12, p. 22).
Oklahoma-Arkansas, meantime, said it received 975 MMcfd of firm transportation nominations during an open season that ended Jan. 12. Capacity of its line, originally 500 MMcfd, can be expanded to about 1 bcfd with compressors.
Interruptible transportation nominations exceeded 8 bcfd. Construction could start as soon as early 1991, service in fall 1991.
FTC PROCEEDING
FTC said Arkla's 1986 acquisition of TransArk Transmission Co. could reduce competition in gas transport into and out of parts of Northwest Arkansas.
Arkla Inc. proposed to sell some facilities to Coastal and agreed not to acquire any other major Northwest Arkansas gas transport facilities for 10 years absent FTC approval.
The sales are provided for under a series of agreements between Arkla and Coastal signed in early 1989.
TransArk is a former 12 in. petroleum products pipeline from south of Fort Smith, Ark., through much of the basin's gas producing fairway to east of Conway, Ark.
Copyright 1990 Oil & Gas Journal. All Rights Reserved.