NORTHERN BORDER INKS ACCORDS WITH SHIPPERS

Northern Border Pipeline Co. has signed precedent contracts with seven shippers for firm capacity and filed for federal approval to substitute 36 in. pipe for 30 in. pipe on its proposed expansion/extension project.

In other U.S. pipeline activity:

Consolidated Natural Gas Co. (CNG) received Federal Energy Regulatory Commission approval to provide gas service in Virginia.
Bechtel Corp. is developing a bidding process for work on the Pacific Gas Transmission Co.-Pacific Gas & Electric Co. extension.

NORTHERN BORDER

Shippers who signed Northern Border precedent agreements are Alenco Resources Inc., Amerada Hess Corp., Canterra Natural Gas Inc., Mobil Oil Canada Ltd., Natgas U.S. Inc., Prairielands Energy Marketing Inc., and Tennessee Gas Pipeline.

Canterra, a unit of Husky Oil Ltd., Calgary, arranged for 100 MMcfd in firm space to Tuscola, III. Husky said this space will permit direct gas sales to Consumers Power Co. and Midland Cogeneration Venture at 30 MMcfd, Power City Partners, Messena, N.Y., 20 MMcfd, and San Diego Gas & Electric 20 MMcfd.

The company had asked FERC for clearance to build five more compressor stations on the present 822 mile, 42 in. system and to lay 368 miles of 30 in. pipe to extend the line from Ventura, Iowa, to interconnect with Panhandle Eastern Pipe Line Co. at Tuscola, III. It now wants to substitute 36 in. for the 30 in. pipe on the Ventura-Tuscola line.

Two compressor stations are to be built on the new line. The project, which will have 1.7 bcfd total capacity, is expected to cost about $373 million.

Northern Border said the 36 in. pipe will cost another $60 million. But that will be offset by revenues from the added capacity, which will increase to a total 600 MMcfd, expandable to 1 bcfd. Tariffs will not change from the original filing--34/Mcf for firm service from the Canadian border to Ventura and 49/Mcf to Tuscola.

Capacity was allocated for those seven contracts after allowing for firm service already assigned to Enron Gas Marketing Inc., Panhandle Eastern Pipe Line Co., and Suncor Inc. Norther Border said another prospective group of shippers will be given capacity if it becomes available.

CNG SERVICE

CNG plans to sell gas to utilities and other wholesale gas customers in Virginia. FERC has authorized its CNG Transmission Corp. unit to lay a 27 mile extension from an existing terminus south of Leesburg, Va., to connect with an intrastate line being developed by Virginia Natural Gas Inc.

Under the FERC approved plans, CNG Transmission will provide as much as 30 MMcfd long term service to Virginia Natural Gas and 25 MMcfd to the City of Richmond municipal gas utility.

It will also provide as much as 125 MMcfd in firm service for a 650,000 kw electrical power plant to be built by Doswell LP and 42.5 MMcfd for a Virginia Electric & Power Co. generating plant, both near Richmond.

In addition, CNG will supply interruptible storage to Doswell and Virginia Electric & Power.

BECHTEL BIDDING PROCESS

Bechtel plans to use a prequalified bidding process for construction-related work on the 845 mile, $1.2 billion PGT-PG&E system expansion. Bechtel is project manager.

Bechtel recently let the project's engineering contract to Gulf Interstate Engineering-ICF Kaiser Engineers and to Fish Engineering, both of Houston.

It said bidding opportunities for subcontractors and suppliers are being developed, and qualified minority and female owned firms will be sought in all phases of the project.