Transportation news briefs, May 31
Coastal Corp. seeks bids on offshore portion of Gulfstream pipeline; Alliance Pipeline bond rating confirmed.
Coastal Corp., Houston, has requested bids for the offshore portion of its proposed $1.6 billion, 1.1 bcf/day Gulfstream Pipeline from 10 prequalified bidders. The bids are due today. The Gulfstream project is a 744-mile pipeline that will carry gas from Alabama across the Gulf of Mexico to Florida. The request for quotations includes offshore assembly and installation of more than 400 miles of 36-in.-diameter pipe to transport dry, processed natural gas to serve customers in Florida. Final environmental and routing approvals by the Federal Energy Regulatory Commission are anticipated by March 2001.
Dominion Bond Rating Service, Toronto, Ontario, has confirmed its rating on senior notes of Alliance Pipeline LP at BBB (high) with a stable trend. The high-pressure natural gas and liquids line from Western Canada to the Chicago area is now 85% complete and on schedule for start-up in October 2000. The rating service said construction costs are close to a July 1999 control budget, and much of the risk of cost overrun has been overcome. It said 15-year ship-or-pay contracts are now in place with 36 shippers. The line will have initial capacity of 1.3 bcf/day.