COLUMBIA, ANR SET SIGHTS ON SYSTEM EXPANSIONS

U.S. gas pipelines are moving to expand to meet growing demand.

Among the latest developments:

Columbia Gas Transmission Corp. plans to spend about $350 million for a 450 MMcfd expansion of firm storage and transportation services. The 3 year project is to get under way in 1997.
Coastal Corp.'s ANR Pipeline Co. will hold an open season to determine market demand for an expansion of its system. Such a project would accommodate added volumes resulting from expansions proposed by Natural Gas Pipeline Co. of America (NGPL) and Northern Border Pipeline Co.

COLUMBIA EXPANSION

Columbia Transmission, a unit of Columbia Gas System Inc., has signed binding 15-year precedent agreements to provide increased volumes of gas to 23 customers. Most of them are local distribution companies, mainly in midwest and mid-Atlantic regions.

Under the agreements, Columbia Transmission will increase its current level of firm service entitlements by about 7%.

Ninety percent of the new capacity is for firm storage service. The balance is for firm transportation service.

Tentative plans for the expansion were disclosed late in 1994. Customers identified their firm transportation and storage service needs during an open season earlier this year.

Columbia Transmission is exploring ways to meet additional customer requests.

As part of the expansion project, the company will drill more gas storage wells and increase the deliverability of existing wells.

Columbia Transmission also will add about 100 miles of pipeline in about 14 segments along its core pipeline system and install about 50,000 hp of compression.

The company later this year will ask the Federal Energy Regulatory Commission for a permit to construct the added facilities. Details on the projects will be included in the filing.

In addition, a filing will seek any necessary bankruptcy court approvals for the expansion program.

The company will propose that expansion costs be rolled into existing rates. It said the effect on existing rates will be small and well within the 5%increase threshold set by FERC.

ANR OPEN SEASON

ANR's open season will begin this week and close Aug. 11.

"ANR is strategically positioned to move additional volumes of gas eastward from Joliet, Ill.," said James F Cordes, executive vice-president of Coastal Corp. and president of its natural gas group.

"By expanding its system, ANR will be able to deliver additional volumes of either Canadian or domestic gas to markets and storage facilities downstream of expansions planned by NGPL and Northern Border.

"The combination of ANR's pipeline network and storage facilities provides potential shippers the operating flexibility to tailor supply packages for delivery to eastern markets. ANR's system can facilitate deliveries to virtually any market east of the Mississippi River."

ANR will offer negotiated rates for transportation from the Joliet interconnections, as well as annual, seasonal, and peaking storage services. Sample delivery points and rates will be posted on ANR's electronic bulletin board.

After assessing results of the open season, ANR will determine what new facilities are required and their cost. The company plans to file applications with FERC to achieve a Nov. 1, 1997, start-up for its expansion.