TransCanada Pipelines on Monday began a non-binding open season to gauge shipper interest in proposed changes to its ANR system that are designed to move natural gas production from the Marcellus and Utica shales to premium markets.
ANR's Lebanon Lateral project would expand receipt capacity on its Lebanon Lateral in eastern Indiana and western Ohio to 350,000 Dt/d from 290,000 Dt/d. The receipt capacity could be expanded further to 620,000 Dt/d, TCPL said in a website posting.
Under the plans, existing capacity on ANR from Lebanon south to Patterson, Louisiana, also will be limited to approximately 112,000 Dt/d beginning November 1, but could be expanded based on customer interest, TCPL said.
TCPL said only minor facility modifications and additional compression may be required since the project largely utilizes existing facilities. The project could be in service as early as November 1, spokesman David Dodson said.
The open season will end on June 22.
"We know that new supplies of natural gas associated with shale formations in Ohio, Pennsylvania and elsewhere are seeking new markets and transportation alternatives," Dan Andruccioli, manager of business development for ANR, said in a statement.
"Expansion of the receipt capacity on the existing Lebanon Lateral on the ANR System would provide new, valuable transportation options that could deliver gas to markets in the Southeast and Midwest."
The Lebanon Lateral expansion, which would essentially backhaul shale gas to the Midwest and the Gulf Coast, is the latest in a line of pipeline projects aimed at connecting growing supply basins to high demand markets, including the Southeast.
