U.S.-Canadian pipeline slates novel open season

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Maritimes & Northeast Pipeline LLC plans an innovative open season for services in Phase 2 of its proposed U.S.-Canadian gas pipeline system.

During a period that began Mar. 18 and will end Apr. 17, the pipeline's potential customers in eastern Canada and the U.S. Northeast may select multiple supply and transportation options. Customers may specify how they want their service structured, with options including transportation, storage, and supply.

George L. Mazanec, chairman of the pipeline's management committee, called the approach "a new way of defining and nominating for services vs. the 'one size fits all' open season typically offered in the past."

He said, "The marketplace is demanding new services that have greater value than traditional service packages. This offering provides customized services with specific features which will make Sable gas supply a valuable addition to the diverse supply portfolios that exist today."

Mazanec also is vice-chairman of PanEnergy Corp., Houston, U.S. sponsor of the system that will afford the first outlet for gas reserves off eastern Canada. Supply will come from gas fields in the Sable Island region of the Scotian Shelf off Nova Scotia.

The pipeline will provide customer services on a nondiscriminatory, open access basis. It will accept nominations for services that will start as early as 1999.

The overall program carries the designation of the Maritimes & Northeast Pipeline/Sable Offshore Energy Project.

Maritimes & Northeast Pipeline is the transportation unit for the Sable Offshore Energy Project. Affiliates of PanEnergy, Westcoast Energy Inc., Mobil Oil Corp., and Eastern Enterprises formed the pipeline to construct and own the U.S. portion of the system.

Phase 2

Phase 2 of the Maritimes & Northeast pipeline project aims to open areas of eastern Canada that are not currently served by natural gas.

The phase involves construction of about 340 miles of 24 in. pipeline in Canada between Country Harbour, N.S., and St. Stephens, N.B., and 225 miles of 24 in. line and related facilities in the U.S. between Woodland and Wells, Me.

Phase 2 facilities, with initial capacity of 400 MMcfd, will allow delivery of Sable Island area gas to markets in the Canadian maritime provinces and the U.S. Northeast.

Mobil Oil Canada Properties, Shell Canada Ltd., Petro-Canada, Imperial Oil Resources Ltd. and Nova Scotia Resources Ltd. plan to tap an estimated 3 tcf of reserves in six offshore fields in the Sable Island area. The companies will soon file a development plan for the offshore project with the Canada-Nova Scotia Offshore Petroleum Board.

The Maritimes & Northeast system, scheduled to start up in November 1999, ultimately will traverse about 630 miles across Nova Scotia, New Brunswick, Maine, and New Hampshire before linking up with the North American pipeline grid in Massachusetts.

Maritimes & Northeast Pipeline's Phase 1 transportation services are fully subscribed. The company last month filed an application with the U.S. Federal Energy Regulatory Commission seeking a permit to start construction of Phase 1, expected to be in service by 1997 (OGJ, Feb. 19, p. 22).

PanEnergy, in addition to being directly responsible for the U.S. portion of the pipeline, is responsible for overall development of the project. Westcoast Energy is responsible for development of the Canadian portion.