Vector Pipeline L.P. and Vector Pipeline Limited Partnership today announced plans to hold a binding Open Season in September 2008 to secure shipper interest in a third expansion of the Vector Pipeline System.
The 2010 Expansion proposes to add longhaul capacity of up to 120 million cubic feet per day (MMcf/d) by adding two new compressors and upgrades to the U.S. portion of the system. The expansion could also include up to 700 MMcf/d of shorthaul capacity (from Belle River, Mich. to Dawn, Ontario) by adding a loop to the Canadian side of the pipeline system.
"If shipper support for growth continues at its brisk pace, this will be our third expansion," said John Donaldson, Vector Pipeline vice president of marketing. "We still see increasing demand from downstream expansions on connecting pipeline systems, Millennium Pipeline shippers at Dawn, and storage expansions in southeastern Michigan and southwestern Ontario. Supply access is also on the upswing, particularly in the Midwest, with the recently constructed and announced pipelines from the Rockies. We're holding this Open Season now to ensure we keep meeting the growing need for secure, reliable natural gas that Vector Pipeline delivers. If justified by shipper support, we would target an in-service date of November 2010, given timely regulatory approvals."
Binding bids for firm capacity will be accepted from September 2, 2008, until 4 p.m. EDT, Tuesday, September 30, 2008. Vector will make a final determination of incremental capacity following the conclusion of the binding Open Season. Open Season materials will be available on the Vector website (www.vector-pipeline.com). Additional shipper information about this proposed expansion is available by contacting John Donaldson at (734) 462-0238 or Matt Malinowski at (734) 462-0236.
Vector Pipeline's 2009 Expansion was approved earlier this year by the Federal Energy Regulatory Commission to increase nominal capacity of the Vector Pipeline from approximately 1.2 billion cubic feet per day (Bcf/d) to approximately 1.3 Bcf/d. Vector Pipeline will complete this expansion by building a new compressor station in Athens Township, Mich. It is projected to be in service in late 2009. Last year Vector Pipeline completed its first expansion by installing compressor stations in Joliet, Ill., and Washington Township, Mich.
The Vector Pipeline System - constructed in 2000 - consists of 349 miles of mainline natural gas transmission pipeline between the Chicago Hub and the storage complex at Dawn, Ontario. Vector Pipeline L.P.'s system begins in Joliet, Ill., and terminates at the international border at St. Clair, Mich., where it interconnects with the Vector Pipeline Limited Partnership system, which provides service to the Dawn storage facilities. The system has multiple interconnections, which include Alliance, Northern Border, Guardian, ANR, NIPSCO, Crossroads, Consumers Energy, MichCon, DTE Washington 10 Storage, Bluewater Gas Storage, Enbridge Gas Distribution and Union Gas. Three power plants also are tied into the Vector system: Crete Energy Ventures, Kinder Morgan-Jackson and Greenfield Energy Centre.
