NORTHERN BORDER CHANGES EXPANSION PLAN

Northern Border Pipeline Co. has changed its expansion plan currently before the Federal Energy Regulatory Commission. Under a revised proposal, Northern Border will build four 20,000 hp compressor stations on its 822 mile, 42 in. pipeline, acquire from Natural Gas Pipeline Co. of America a 147 mile, 30 in. line between Ventura and Harper, Iowa, designated the Iowa line, and build a meter station at the Harper delivery point.

Sept. 30, 1991

2 min read

Northern Border Pipeline Co. has changed its expansion plan currently before the Federal Energy Regulatory Commission.

Under a revised proposal, Northern Border will build four 20,000 hp compressor stations on its 822 mile, 42 in. pipeline, acquire from Natural Gas Pipeline Co. of America a 147 mile, 30 in. line between Ventura and Harper, Iowa, designated the Iowa line, and build a meter station at the Harper delivery point.

The project is estimated to cost $158 million, including $78 million to acquire the Iowa line. It is expected to be ready for service in November 1992. That's the same timing as the earlier project, which was estimated to cost $424 million (OGJ, Jan. 28, p. 46).

Northern Border said the change is the result of a June 14 FERC order that found its earlier project lacking in downstream transportation capacity.

No new pipeline construction will be required. So Northern Border expects environmental review to be limited to an environmental assessment rather than an environmental impact statement.

A planned extension of the pipeline from Harper to Tuscola, Ill., has been placed on hold pending gas market developments that will support that project.

The company has signed service agreements with 10 shippers representing an added 313 MMcfd through an expanded system. In addition, about 386 MMcfd will be delivered at Harper.

The shippers are Amerada Hess Corp., Enron Gas Marketing Inc., Husky Oil, North Canadian Resources, Mobil Oil Canada, Natural Gas Pipeline Co. of America, Panhandle Eastern Pipe Line Co., Prairielands Energy Marketing Inc., Suncor Inc., and Tennessee Gas Pipeline.

Northern Border plans to roll in with its existing system costs the construction costs for the new facilities as well as the acquisition cost for the Iowa Line.

It figures the system expansion will cut transportation costs to its customers by 9% and will result in transportation costs about 32 cents/Mcf from the Canadian border to Ventura and 37 cents/Mcf from the Canadian border to Harper.