TransCanada subsidiary ANR Pipeline asked FERC Thursday to allow it to sell its offshore pipelines and platforms in the Gulf of Mexico because its shippers are shifting to onshore gas supplies.
The facilities include 535 miles of pipeline, seven offshore platforms and other related facilities, including three discrete gathering and transmission systems.
"ANR has determined that to best meet the needs of its downstream shippers, it must move away from its role as aggregator of offshore supplies and instead focus its efforts and resources on its onshore system," the application said.
The company proposes to abandon the facilities by selling them to a new company, TC Offshore, which will be a subsidiary of ANR. "Offshore's focus will be the optimization of the offshore assets. As such, Offshore's interests will be appropriately aligned with those of offshore producers and shippers who utilize and benefit most from the reliability of the facilities."
ANR said that "recent and dramatic changes in supply patterns and gas flows across the ANR system" led it to seek the abandonment. Gas supplies in the Gulf of Mexico are declining and being offset by booming onshore shale gas supplies. As a result, the offshore sources are no longer needed to meet ANR's market needs, but the shippers are still exposed to the cost of repairs, hurricanes and abandonment.
Dean Patry, vice president for US pipeline central at TransCanada, said the current system allows producers to transport gas to the pooling point for low or no cost. The new company will be able to set a new rate structure that requires the producers to pay a toll, he said. The approach will make the facilities more economically viable because Offshore will be able to charge tolls "that are more in line with the services they provide," he said.
Offshore filed a separate application asking for authority to acquire and operate the facilities and seeking a blanket construction and blanket transportation certificate.
