8 Pipeline News

• September 2008 • www.pipeline-news.com

GAS - The Americas

U.S.

ALASKA (STATE OF)/TRANS CANADA/FOOTHILLS – (REV. 7/08)

The State of Alaska has completed its review of applications submitted by five companies for theexclusive right to build the Alaska Gas Pipeline totransport North Slope gas to market with TransCanadathe apparent early winner. The application fromTransCanada Alaska Company, LLC/FoothillsPipelines, Ltd. (TransCanada) satisfied all of the man-datory requirements set out in the required AlaskaGasline Inducement Act (AGIA). Thus, TransCanada’sapplication will move to the evaluation phase.In other news, Alaska’s Gov. Sarah Palin recom-mended in May 2008 that state lawmaker approveTransCanada proposal to build the project. She saidthe Calgary-based company’s plan merits issuance of alicense under the AGIA.The long awaited

Alaska Gas Pipeline

, if completed,could transport 4.5 Bcf/d from Alaska’s North Slopeprimarily to Chicago for distribution throughout theU. S. The proposed route involves an estimated 2,100miles of 52-inch diameter pipeline. The pipeline wasestimated in 2001 to cost at least $20 billion, but steelprices have risen dramatically since then, and no steelcompany currently makes that diameter of pipe. At thisdate, there is no timetable for building the pipeline.

ALGONQUIN GAS TRANSMISSION –(REV. 7/08)

Algonquin Gas Transmission, a subsidiary of SpectraEnergy, has filed an application with FERC to con-struct the $1.5 billion

East-to-West Expansion

projectto transport more than 1 Bcfd of eastern LNG-basedsupplies to Northeast markets. The project will requiremodifications to four existing compressor stations, theconstruction of one new compressor station, the loop-ing and/or replacement of approximately 17.3 miles of existing pipelines, construction of approximately 13miles of new pipeline, and installation of gas chromato-graphs at 29 existing meter stations and over-pressureprotection at four locations along its right-of-way.The project will direct significant new supplies of re-gasified LNG from the eastern end of the Algonquinsystem into high-growth markets in the NortheastUnited States, including New England, New York andNew Jersey, by November 2009.

ALLIANCE/DUKE/NJR – (REV. 1/07)

Alliance Pipeline, Duke Energy Gas Transmissionand NJR Pipeline Company, a subsidiary of NewJersey Resources have signed a MOU to constructthe

Lebanon Connector Pipeline

. An open season isbeing conducted for the natural gas pipeline to bringCanadian gas supplies to U.S. Northeast markets andregional storage. The pipeline would connect fromeither the Alliance Pipeline in Joliet, IL or froman interconnect with the Vector Pipeline at or nearSpringville, IN. Dependent upon the final route, thepipeline would be 125-170 miles in length and wouldfollow the existing Texas Eastern Lebanon Lateral.Plans call for the project to be completed in 2008.

ALLIANCE PIPELINE/QUESTAROVERTHRUST PIPELINE – (REV 6/08)

Alliance Pipeline Inc. and Questar Overthrust PipelineCompany conducted a binding open season from May12 to June 16, 2008 for the proposed

Rockies AlliancePipeline (RAP),

a jointly owned interstate naturalgas transportation system from the Rocky MountainRegion to the Ventura, IA, and Chicago, IL tradinghubs. Based on discussions with prospective shippersfollowing the project announcement on March 25,2008, the sponsors have revised the route to bettermeet market needs. The new route connects RockyMountain producing areas directly to the Ventura andChicago trading hubs. Capacity for RAP is 1.2 Bcf/dwith expansion capability to 1.8 Bcf/d.By capitalizing on both Questar’s and Alliance’sexisting systems, RAP will allow shippers to transportgrowing natural gas production volumes from theGreater Green River, Piceance and Powder Riverbasins to growing mid-western and eastern markets.The project will require approximately 900 miles of new42-inch pipe, extending east from Wamsutter, WY toVentura where it will connect to Alliance Pipeline andNorthern Natural Gas. Questar’s Overthrust Pipelinecan be expanded at low cost to connect multiple receiptpoints between Opal and Wamsutter.In a separate open season, Overthrust Pipeline isproposing to add up to 1.0 bcf/d incremental capacityfrom Opal to Wamsutter and construct a proposed newWhite River Lateral from the White River Hub in thePiceance Basin to Wamsutter. With minor modifications,Alliance can enhance downstream capacity on itssystem which connects to Guardian, Vector, Peoples,Nicor, ANR, NGPL and Midwestern.Subject to obtaining shipper commitment forthis system and regulatory approvals, the pipeline isexpected to be placed into service as early as thirdquarter 2011.

ANR PIPELINE CO. – (12/07)

ANR Pipeline Co., a subsidiary of El Paso Corp., recent-ly held an open season for its proposed

Wisconsin/ Illinois 2009 Pipeline Expansion.

The project proposesthe expansion of ANR’s existing mainline and lateralfacilities within Wisconsin and Illinois. Service is antici-pated to commence on Nov. 1, 2009.

ASPEN PIPELINE – (8/07)

Aspen Pipeline plans to build a high pressure naturalgas pipeline to transport gas from Arena Resources’Yates formation in Andrews County, TX to a firedelectric utility in Odessa, TX. The 50-mile pipeline isscheduled for completion in mid-2008.

ATLAS PIPELINE PARTNERS - (6/08)

Atlas Pipeline Partners, L.P., through a wholly ownedsubsidiary, Atlas Pipeline Mid-Continent L.L.C hasproposed building a natural gas pipeline extension,designated as the

Tenark Pipeline Project

. The linewould extend from Ozark’s existing interstate naturalgas transmission system in White County, AR to pointsof interconnection with Trunkline Gas Company andTexas Gas Transmission near Dyersburg, TN. Tenarkis expected to consist of approximately 160 miles of 36-inch pipe, compression and related facilities. Theline will extend northeast from Ozark’s existing inter-state natural gas transmission system in White County,AR to its terminus at interconnections with TrunklineGas Company (Zone 1B) and Texas Gas Transmission(Zone 2) near Dyersburg, TN. Initial capacity of Tenarkis expected to be 700,000 Dth/d with the potential toexpand at a later date to 1,200,000 Dth/d. The ultimatecapacity of Tenark will be determined by the level of shipper commitments during an open season. The projected in-service date is November 2010.

BISON PIPELINE LLC – (REV. 7/08)

Northern Border Pipeline Co.’s wholly ownedsubsidiary, Bison Pipeline LLC, received a boost forits proposed

Bison

natural gas pipeline system whenAnadarko Energy Services Co. signed a letter of intent to be a foundation shipper on the pipeline. Theagreement is subject to approval by the Anadarkoboard. As proposed, the pipeline extends from naturalgas gathering facilities located in the Powder RiverBasin supply area to a point of interconnection withNorthern Border Pipeline Company in MortonCounty, ND. The Bison project will consist of 289miles of 24-inch pipe, compression and added plantfacilities, originating at the natural gas gatheringfacilities of Fort Union Gas Gathering, L.L.C. andBighorn Gas Gathering, LLC near Dead Horse, Wyo.The pipeline will extend in a northeasterly directionto its terminus in Morton County, North Dakota nearNorthern Border’s Compressor Station No. 6. Initialcapacity is expected to be 400 MMcf/d with a maximumcapacity of 600 MMcf/d. The projected in service dateis November 2010.

BP/ CONOCOPHILLIPS – (REV. 6/08)

BP and ConocoPhillips, through their joint venturecompany,

Denali—The Alaska Gas Pipeline

LLC

, havesubmitted a letter to the Federal Energy RegulatoryCommission seeking permission to use the agency’spre-filing procedures for the natural gas project. Witha pre-filing status, Denali could kick off at least 18months of engineering and other planning work forthe multibillion-dollar pipeline from the North Slopegas fields to Alberta, Canada. The pipeline will moveapproximately 4 Bcf/d of natural gas to market, andwill be the largest private sector construction projectever built in North America. The project combinesthe financial strength, arctic experience and technicalresources of the two companies.BP and ConocoPhillips plan to spend $600 millionto achieve the first major project milestone, an openseason, commencing before year end 2010. Followinga successful open season, the companies intend toobtain FERC and NEB certification and move forwardwith project construction. The timetable calls for thepipeline to be in service in 2018.As proposed, the project consists of a gas treatmentplant on Alaska’s North Slope and a large-diameterpipeline that extends 700 miles through Alaska, andthen into Canada through the Yukon Territory andBritish Columbia to Alberta. The proposed line closelyfollows the original route from 1976. Should it berequired to transport gas from Alberta, the project alsowill include a large diameter pipeline from Alberta tothe Lower 48 states. BP and ConocoPhillips will seekother equity partners, including pipeline companies,who can add value to the project and help managethe risks involved. Total cost estimates range from $25billion to $40 billion.In recent developments, TransCanada Corp. andEnbridge Inc. report they are ready to participate withthe two producers noting that statements from BP andConocoPhillips indicate they would welcome pipelinecompany partners.

BRADFORD LANDING LLC – (7/08)

Bradwood Landing LLC’s Bradwood Landing LNGproject in Oregon and Washington, has received theenvironmental go-ahead. From the FERC. As pro-posed, the project would consist of an LNG importterminal located about 38 miles up the Columbia Riverfrom its mouth, in Clatsop County, OR, and a 36.3-mile-

Planned pipeline construction projects in the feasibility stage or not yet permitted.

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10 Pipeline News

• September 2008 • www.pipeline-news.com

long sendout pipeline, crossing Clatsop and ColumbiaCounties OR and Cowlitz County, WA, connecting theterminal with the existing Williams Northwest PipelineCorporation interstate system near Kelso, WA.The LNG terminal would have a sendout capac-ity of 1.3 Bcf/d. Along the pipeline route, wouldbe interconnections and meter stations to delivernatural gas to the Georgia-Pacific Wauna paper mill,Northwest Natural Gas Corporation intrastate system,the Portland General Electric Beaver power plant, andWilliams Northwest.

CENTERPOINT ENERGY GASTRANSMISSION – (6/08)

CenterPoint Energy Gas Transmission (CEGT) heldtwo non-binding open seasons to gauge market inter-est in new interconnect and interstate pipeline facili-ties to connect growing supplies of natural gas in theFayetteville Shale in NE Arkansas to existing interstatefacilities that provide access to markets in the Midwestand Northeast. As proposed, The

Friendship lateral

would be built from the terminus of CEGT’s Line J inNE Arkansas to potential interstate pipeline receiptpoints with Texas Gas Transmission’s Zone 2 andTrunkline Gas’ Zone 2b, both in western Tennessee,near the town of Friendship. The

Searcy lateral

wouldprovide firm backhaul service for Fayetteville pro-ducers to move natural gas in eastern White County,AR into Texas Gas Transmission’s to-be-built 36-inchdiameter Fayetteville lateral at a point near Searcy. TheSearcy lateral is to begin service in first quarter 2009and the Friendship lateral in third quarter 2010.

(4/08)

CenterPoint Energy Gas Transmission Company(CEGT) plans to offer firm transportation capacity inits Bennington Lateral, a proposed 36-inch pipelinewith a design capacity of 1.0 Bcf/d. The BenningtonLateral is expected to be built from near Wardville,OK, to various interstate pipeline receipt/deliverypoints near Bennington in Southeast Oklahoma, aswell as providing access to existing CEGT storagefacilities located near Ada and Chiles Dome, OK.Upon confirmation that there is sufficient interestin the market to support this expansion, plans are tomove quickly to execute binding precedent agree-ments, and place this project in service by winter2009 - 2010.

CHAPARRAL PIPELINE COMPANY LLC –(3/08)

TEPPCO Partners, L.P. affiliate, Chaparral PipelineCompany LLC, is holding an open season from Feb.11, to April 12, 2008 to seek shipper support for aproposed expansion of its 845-mile NGL pipelineoriginating in the Permian Basin of West Texas andeastern New Mexico. The Chaparral pipeline deliversNGLs to the world’s largest NGL fractionation com-plex in Mont Belvieu, TX. The planned expansion isdesigned to increase annual average system capacityby approximately 15,000 or 20,000 bpd, depending onshipper response to the open season. The expansionwould involve upgrading certain pipe sections, andmay include installing additional pumping capabilityat existing pump stations. If there is sufficient shippercommitment, the additional capacity could be availableas soon as early 2009.

CHENIERE ENERGY PARTNERS, L.P. –(REV. 3/08)

Cheniere Energy Partners is moving forward withplans to build a natural gas transportation project tolink growing demand markets in the Southeast withnew incremental natural gas supplies sourced frommultiple LNG import terminals existing and underconstruction in and around Louisiana. The

SouthernTrail

Pipeline, formerly known as the Louisiana NaturalGas Header, would also be able to interconnect withexisting pipeline infrastructure, providing shippers withaccess to wellhead natural gas supply sources, includingoffshore, onshore conventional and recently developedunconventional resources.As currently contemplated, the pipeline wouldinvolve the construction of approximately 348 miles of up to 42-inch pipe starting in Beauregard Parish nearDequincy, LA, to an interconnect with the Florida GasTransmission pipeline near its Station 11 in MobileCounty, AL. Cheniere’s next step to initiate an envi-ronmental pre-filing with FERC. Pending regulatoryapprovals, the project could be placed into service asearly as mid-2010.

COLORADO INTERSTATE GAS CO. –(8/08)

Colorado Interstate Gas Co. (CIG), a subsidiary of El Paso Corporation, has proposed expanding itsnatural gas pipeline transmission system that servesthe Raton Basin. The expansion will provide 130MMcf/d of incremental firm capacity from the LasAnimas County, CO area of the growing Raton Basinnorthward along the Front Range of Colorado to theCheyenne Hub. Anticipated cost of the expansion is$146 million, which is supported by long-term firmtransportation commitments with three shippers fornearly all of the expansion’s capacity. In service datefor the new 118-mile, 16-inch line is targeted for thesecond quarter of 2010.

COLUMBIA GAS TRANSMISSION – (6/07)

Columbia Gas Transmission Corp. has filed with theFERC for approval to construct its

Eastern MarketExpansion Project

. As proposed, the project willrequire pipeline loops and expansions to compressionand storage networks to provide an incremental 97,050Dth/d of storage deliverability and associated firmpipeline transportation capacity to local gas distribu-tion company customers in Virginia and Pennsylvania.The project will represent investments in infrastructureof $175 million and serve the growing eastern marketsand mid-Atlantic markets. The proposed in-servicedate is April 1, 2009.

COLUMBIA GAS OF PENNSYLVANIA –(11/07)

Columbia Gas of Pennsylvania reports it will devotesome $1.2 billion for a 20-year project to replace 2,400miles of distribution and service lines in its 27-countyservice area. The cost will average $60 million a yearto replace 600,000 feet of pipe to its 410,000 residentialand business customers. Columbia Gas says is it willhire subcontractors. The plan is to work on nine or 10sites next year including South Hills, Uniontown, plus acouple of site in Washington and Beaver Counties.

DCP MIDSTREAM PARTNERS/M3MIDSTREAM LLC – (9/08)

DCP Midstream Partners, LP and M2 MidstreamLLC haves signed an agreement to develop a largediameter natural gas pipeline to move gas from theemerging Haynesville Shale play in North Louisiana.As an extension of DCP’s Pelico Intrastate Pipeline,the new pipeline, named the

Haynesville Connector

,would originate in western DeSoto Parish and extendover 150 miles to Delhi, LA., providing access to take-away pipelines in the area such as the Southeast SupplyHeader, Columbia Gulf Transmission, ANR Pipeline,Trunkline Gas, Texas Gas Transmission, Tennessee Gas,CenterPoint Energy and Gulf South Pipeline. If built,the Haynesville Connector is expected to commenceinitial deliveries in the third quarter of 2009 and wouldoffer an estimated 1.5 Bcf/d of takeaway capacity byearly 2010 to help meet anticipated needs for pipelineinfrastructure in the Haynesville Shale.

DCP MIDSTREAM/DCP MIDSTREAMPARTNERS – (9/08)

DCP Midstream, LLC and its master limited partner-ship DCP Midstream Partners, LP announced a $56million pipeline project which will extend their EastTexas joint venture gathering footprint in southernPanola County and access volumes from the rapidlygrowing Minden Field in Rusk County. The 30-mile, 20inch pipeline with a designed capacity of 175 MMcf/dwill gather gas for processing at the joint venture’sEast Texas complex. The gathering system is scheduledto be in-service during the second quarter of 2009.Upon completion, the pipeline will receive dedicatedvolumes from third parties and expand the reach of thesystem into a new development area of East Texas.The East Texas joint venture is 75% owned byDCP Midstream, LLC, and 25 percent owned by DCPMidstream Partners, LP. It includes over 500 milesof gathering pipeline and over 25,000 horsepower of compression and has a processing capacity of nearly800 MMcf/d across five plants. The East Texas complexis strategically linked to the Carthage Hub with accessto 10 different residue lines with 1.5 Bcf/d of deliverycapacity.

DOMINION TRANSMISSION – (REV. 3/08)

Dominion Gas Transmission, a unit of Dominion, has secured firm, long-term commitments to receivegas from the Rockies Express (REX) Natural GasPipeline and move it to major markets in the Northeastand Mid-Atlantic regions. Dominion’s project, named

Dominion Hub I,

is the first transportation projectto provide firm access from the REX pipeline tothe Northeast and Mid-Atlantic regions. Subject toregulatory approval, Dominion expects to completerelated facility construction in Westmoreland County,PA and begin firm service in November 2009.

EAST TENNESSE NATURAL GAS – (8/08)

East Tennessee Natural Gas (ETNG), a subsidiary of Spectra Energy Partners LP, has filed an applicationwith FERC for the

Greenway/Nora Expansion

projectto transport up to 50 MMcf/d of Appalachian naturalgas.

The expansion will be constructed entirely withinETNG’s existing facilities footprint through the addi-tion of 5.65 miles of 24-inch pipeline replacement inVirginia and various meter interconnect upgrades. Theestimated cost of the project is $18.9 million. In-serviceis anticipated in December 2009.

EASTERN SHORE NATURAL GAS – (8/07)

The Eastern Shore Natural Gas Co. is seeking FERCapproval to build a 78.5 mile pipeline across

southernDelaware and Maryland’s eastern shore by early 2009.The proposed Eastern Energy Link would connectto Dominion’s Cove Point, MD LNG terminal. Theplanned pipeline would require a 2-mile, 24-inch con-nection to the Cove Point, MD terminal; 8-mile, 24-inchsubmerged pipeline from Cove Point to Taylor’s Island,MD; 17-mile, 16-inch line between Taylor’s Island andU.S. 50; 26-mile, 10-inch pipe from U.S. 50 to south of Bridgeville, DE; 12-mile, 10-inch pipe along existingcompany ROW in Laurel, MD; and a 13.5 mile, 6-inchpipe from Millsboro, to the Bishop, MD area.Eastern Shore Natural Gas officials say the projectwill provide gas at lower cost than the current network,

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