Vector Pipeline L.P (Vector Pipeline) and Vector Pipeline Limited Partnership have announced plans to hold a binding open season in November 2009 to secure shipper interest in a third expansion of the Vector pipeline system. The 2011 expansion proposes to add long-haul capacity of up to 115 million cubic feet per day (MMcf/d) by adding two new compressors and upgrades to the US portion of the system.
The expansion could also include incremental short-haul capacity (from Washington, Michigan to Dawn, Ontario) by adding a loop to the US and/or Canadian portion of the pipeline system. If justified by shipper support, Vector Pipeline anticipates an in-service date of November 2011 for the long haul-haul capacity, given timely regulatory approvals.
“Business conditions have stabilized and gas supply development continues to increase,” said John Donaldson, vice president of marketing for Vector Pipeline. “We see increasing demand at Dawn along with 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. Vector is unique in this region in its ability to move gas west to east, to storage or eastern markets, as well as east to west, helping Midwestern markets access storage and eastern supplies. We are committed to provide the capacity needed to meet the projected growth in demand for natural gas of consumers and businesses in the region.”
Binding bids for firm capacity will be accepted from November 2, 2009 until November 30, 2009. Vector Pipeline will make a final determination of incremental capacity following the conclusion of the binding open season.
Vector Pipeline’s 2009 expansion was placed into service earlier this month ahead of schedule. The 2009 expansion, which included the new Athens compressor station, increased nominal capacity of the Vector Pipeline from about 1.2 billion cubic feet per day (Bcf/d) to about 1.3 Bcf/d. Vector Pipeline completed its first expansion, the 2007 Expansion, by installing compressor stations in Joliet, Illinois, and Washington Township, Michigan.
The Vector pipeline system, constructed in 2000, consists of 348 miles of mainline natural gas transmission pipeline between the Chicago Hub and the storage complex at Dawn, Ontario. Vector Pipeline’s system begins in Joliet, Illinois, and terminates at the international border at St. Clair, Michigan, where it interconnects with the Vector Pipeline Limited Partnership system, which provides service to the Dawn storage facilities.