Transportation Columbia seeks to expand pipeline

Columbia Gas Transmission Corp. last week asked the Federal Energy Regulatory Commission to approve a 3 year, $350 million expansion of its U.S. pipeline and storage system. The project will provide additional firm storage and transportation services for 23 customers, mainly local gas distribution companies, in eight mid-Atlantic, Midwest, and southern states.

March 4, 1996

2 min read

Columbia Gas Transmission Corp. last week asked the Federal Energy Regulatory Commission to approve a 3 year, $350 million expansion of its U.S. pipeline and storage system.

The project will provide additional firm storage and transportation services for 23 customers, mainly local gas distribution companies, in eight mid-Atlantic, Midwest, and southern states.

In 15 year agreements with customers, Columbia will provide about 506.8 MMcfd of additional firm storage and transportation services, up 7% from current levels. It said 85% of the new services are for storage and storage-related transportation, ranging from 20 to 90 days depending on customer needs.

About half of the new services will start Nov. 1, 1997, 30% Nov. 1, 1998, and the rest Nov. 1, 1999.

The company asked for authority to roll the $350 million cost (in current year dollars) of the expansion into existing rates.

It said the rate increase for existing customers will be 1-2.5%, well below the 5% threshold FERC has established for new projects.

Columbia said existing and expansion customers will benefit from greater flexibility in the use of storage, enhanced operational flexibility, an additional high pressure pipeline system to serve US. eastern markets, greater access to Appalachian area gas supplies, and increased off-peak transportation capacity.

To provide the services, Columbia will improve the performance in 14 of its 44 storage fields, increase operating pressure on about 282 miles of existing transmission pipeline, replace 81/2 miles of transmission pipeline, install or upgrade an additional 65,000 hp at 16 existing and two new compressor stations, install new points of delivery, and lay about 88 miles of pipeline.

Pending FERC and other ap- provals, Columbia plans to begin construction in spring 1997. Deliveries are to begin Nov. 1, 1997.