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TORONTO GAS SUPPLY CAPACITY PROPOSED FOR EXPANSION

Jan. 19, 1993

lnterCoastal Pipe Line joint venture partners have agreed with Consumers' Gas Co. Ltd. of Ontario on a two phase plan to add 230 MMcfd of gas transportation capacity into the Toronto area by November 1996. Phase 1 of the $58 million plan proposed by ANR Pipeline Co., Detroit, and Interprovincial Pipe Line System Inc. (IPL), Calgary, would provide capacity of 130 MMcfd by November 1994. Phase 1 would include: Converting to gas service about 150 miles of 20 and 24 in. IPL crude oil pipeline

Phase 1 of the $58 million plan proposed by ANR Pipeline Co., Detroit, and Interprovincial Pipe Line System Inc. (IPL), Calgary, would provide capacity of 130 MMcfd by November 1994. Phase 1 would include:

Converting to gas service about 150 miles of 20 and 24 in. IPL crude oil pipeline between Sarnia, Ont., and Toronto-mostly Line 8-to form the heart of the InterCoastal system.
Laving two short pipeline segments, including 111/2 miles of 24 in. in Canada to connect InterCoastal with ANR's U.S. pipeline system at the international border and to Consumers' Tecumseh gas storage complex in Southwest Ontario, and a 12 mile lateral in the U.S. by ANR to connect InterCoastal to ANR storage in St. Clair County, Mich.

Phase 2 of the project would involve adding a compressor station near the midpoint of Line 8 to increase capacity to 230 MMcfd in 1996. More than 70% of InterCoastal's initial capacity is subscribed to deliver gas from storage at Tecumseh to the Toronto area.

InterCoastal's plan is subject to approval by Canadian and U.S. authorities. Partners intend to file required applications in April.

James R. Paul, president and chief executive officer of ANR parent company Coastal Corp., Houston, said the proposed Intercoastal system would connect Consumers' Gas to Coastal's extensive pipeline and Storage network, giving it access to virtually every major gas producing basin in North America.

In addition, InterCoastal would allow ANR the chance to serve growing Toronto gas markets, possibly generating substantial new revenues with minimal capital investment, Paul said.

As originally proposed in third quarter 1991, InterCoastal was to be based on IPL's 30 in., 517 mile Sarnia-Montreal Line 9 oil pipeline (see map, OGJ, Aug. 19, 1991, p. 25). However, later IPL studies showed Line 9 could be used most efficiently by reversing its direction and continuing crude oil service.