Natural Gas Pipeline Co. of America plans to connect its system directly to Northern Border pipeline to improve access to western Canadian gas for itself and other eastern U.S. purchasers.
NGPL plans to lay a $90 million, 150 mile, 30 in. pipeline by the end of 1990 from Northern Border's terminus near Ventura, Iowa, to NGPL's Amarillo main line west of Harper, Iowa.
The Amarillo line originates in West Texas and continues eastward from Harper to Joliet, III., near Chicago.
Construction of the 450 MMcfd link is to start this summer.
NGPL signed a separate agreement with Coastal Corp.'s ANR Pipeline Co. regarding transport of Canadian gas.
NGPL and ANR said they might need to seek Federal Energy Regulatory Commission approval to expand their systems east of Harper to accommodate the added volumes expected from Northern Border.
NGPL said expansion of its system to 700 MMcfd of capacity is possible at modest cost by adding compression and looping.
NGPL presently receives gas from Northern Border in western Iowa via a nonaffiliated pipeline connection.
The new line will be built to provide transportation under Natural Gas Policy Act Section 31 1, which permits expedited construction.
NGPL has acquired the needed right-of-way.
ANR AGREEMENT
NGPL's other agreement calls for ANR to take delivery of Canadian gas from NGPL at an existing connection near Joliet and transport it to connections with other pipelines that serve the East Coast.
That gas will move through ANR's existing system and through a new line under construction that terminates at Lebanon, Ohio. At Lebanon, the new line will connect ANR with Consolidated Natural Gas Co., Texas Eastern Transmission Corp., and Columbia Gas Transmission Corp.
ANR also connects with Columbia at Paulding, Ohio.
NGPL plans to charge 35/MMBTU for transportation from Ventura to Joliet. ANR will charge 30/MMBTU from Joliet to Lebanon, Paulding, and other connections through which ANR can deliver gas to Northeast U.S. customers.
The connections include the proposed Empire pipeline project in New York state, to be operated by a Coastal subsidiary.
Copyright 1990 Oil & Gas Journal. All Rights Reserved.