REVISED March 24, 2015
ANR PIPELINE COMPANY
GULF COAST AND MIDWEST MARKET ACCESS
OPEN SEASON
Due to growing market demand and the continuing development of Utica and Marcellus Shales,
ANR Pipeline Company (“ANR”) is contemplating a number of system enhancements that will
increase the capacity on portions of its system. The Project is intended to provide Utica and
Marcellus shale producers and other interested parties access to the Gulf Coast and Midwest
markets from ANR’s existing ML-3 receipt points including: REX at Shelbyville, Dominion at
Lebanon, Texas Eastern at Glen Karn, and Rover at ANR’s pending interconnection at Westrick,
Ohio, as well as other receipt points on the ANR system. The purpose of this Open Season is to
solicit interest in the new capacity being offered as described below. ANR intends to negotiate
with those parties responding to this Open Season with an expression of interest to find a
mutually acceptable combination of facilities, costs, quantities and rates to implement the Project.
OPEN SEASON PERIOD
This open season shall commence at 11:00 a.m. CT Monday, March 16, 2015, and close at 5:00
p.m. CT on Tuesday, April 7, 2015.
PROJECT SCOPE
GULF COAST MARKETS - Southeast Mainline (“SEML”) Modifications
ANR can offer interested parties up to 190,000 Dth/day of transportation capacity along its SEML
from ML-3 receipt points to delivery points in ANR’s Southeast Area (See Region 1 delivery
options under ANR Delivery Locations below). SEML modifications will include the installation
of gas aftercooling at several compressor stations, the replacement of certain “end-of-life”
compressors, and/or the installation of new compression at certain stations.
MIDWEST MARKETS - Tie-Line Expansion
ANR can offer approximately 558,000 Dth/day across its constrained Tie-Line segment from
Defiance, Ohio to Bridgman, Michigan and to downstream markets.
From Defiance, Ohio (Rover at Westrick) and/or Shelbyville, Indiana (REX at Shelbyville),
ANR will be able to transport up to:
• 158,000 Dth/day to the Joliet Hub (See Region 2 delivery options under ANR Delivery
Locations below), and,
• 400,000 Dth/day north to Farwell, Michigan for access to ANR storage, Michigan, Indiana
markets, as well as markets downstream of Farwell via Great Lakes Gas Transmission
and/or TransCanada PipeLines, such as: Minnesota markets and Dawn, Ontario (See
Region 3 delivery options under ANR Delivery Locations below).
ANR would achieve the proposed expansion of its constrained Tie-Line segment through the
installation of 125 miles of new pipeline from Defiance to Bridgman.
MIDWEST MARKETS - Willow Run Segment Horsepower Expansion
Through the installation of new compression, ANR can offer an additional 140,000 Dth/day of
capacity from Defiance, Ohio (Rover at Westrick) to Willow Run, Michigan (See Region 4
delivery options under ANR Delivery Locations below).
Requests for Other Facilities
At the request of interested parties, ANR may consider providing capacity from or to other
existing, new or expanded receipt or delivery points across the ANR system.
PROJECT TIMING
Depending on scope, the targeted in-service date of the Project can be as early as the 3rd Quarter
of 2017.
PROJECT CAPACITY
The following firm transportation capacity is being proposed:
Receipt Point
Defiance, Ohio (Rover at Westrick, Ohio), REX
at Shelbyville, Dominion at Lebanon, Texas
Eastern at Glen Karn
Defiance, Ohio (Rover at Westrick, Ohio)
Shelbyville, Indiana (REX at Shelbyville)
Delivery Point
Contract Quantity
Region 1
190,000 Dth/day
Region 2
158,000 Dth/day
Region 3
400,000 Dth/day
Region 4
140,000 Dth/day
Region 2
158,000 Dth/day
Region 3
200,000 Dth/day
Region 4
140,000 Dth/day
At the request of interested parties, ANR may consider additional receipt and/or delivery points.
ANR DELIVERY LOCATIONS
Region 1 – Gulf Coast Markets on ANR, Southeast Area Rate Zone
• ANR Southeast Headstation
• Kinder Morgan Louisiana Pipeline (Proposed)
• Acadian
• Cypress
• Bridgeline
• CLECO (Acadia and Teche Plants)
• 3rd Party Storage (Bobcat, Pine Prairie, Egan)
• Southeast Pipelines (FGT, Gulf South and Southern Natural)
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Region 2 – ANR Joliet Hub
• Alliance Pipeline
• Guardian Pipeline
• Northern Border Pipeline
• Midwestern
• NGPL
• Northern Indiana Public Service Company(NIPSCO)
• Peoples
• Vector Pipeline
Region 3 – ANR, Tie-line & MLN Michigan Markets
• DTE Energy (Willow Run & Detroit A)
• Consumers Energy (Overisel & Stag Lake)
• Michigan Power Plants
• Northern Indiana Public Service Company (NIPSCO)
• Southeastern Michigan Gas Company (SEMCO)
• Great Lakes Gas Transmission (Farwell)
• ANR Storage Facilities
• Minnesota Markets via Great Lakes Gas Transmission
Region 4 – ANR, Ohio and Defiance to Willow Run Markets
• DTE Energy (Willow Run)
• Columbia Gas Transmission ( Maumee East & Monclova)
• Ohio Gas Company
• East Ohio Gas Company
CONTRACT TERM
ANR is requesting contract terms between 10-15 years, but may consider a shorter duration based
on other contractual considerations mutually agreed to by the parties.
RATES
NEW CAPACITY PATHS
Rates will be determined after the
conclusion of the Open Season and will be
dependent upon the scope of the facilities
required to provide the services requested
and ultimately awarded in executed
binding precedent agreements. Shippers
will have the opportunity to pay applicable
recourse rates established for this service
or pay a mutually agreeable negotiated
rate.
In addition, shipper will be
responsible for any applicable fuel and
other charges associated with the service
provided.
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MARKETS
Market Demand
The project provides Utica and Marcellus supplies
unparalleled access to existing markets, including:
Louisiana Demand - Mmcf/d
14000
•
•
•
•
•
•
•
•
Multiple liquid pricing hubs including:
o Chicago’s ANR Joliet Hub
o MichCon
o Consumers Energy
o Dawn (indirect)
o Minnesota (indirect)
o Lebanon
o ANR LA
o ANR SW
35+ Electric and Gas Utilities
Significant connections to LDC demand in Michigan,
Wisconsin, Illinois, Indiana, and Ohio
Significant gas-fired power generation demand from 40
power plants across the ANR system with nameplate
capacity of 17,000+ MW
Direct and indirect access to over 900+ Bcf of storage
capacity, including 250 Bcf of ANR on-system storage
Access to off-system storage, including MichCon,
Consumers, Bluewater, MGU, Peoples, Panhandle, and
Dawn
Growing industrial markets
Multiple LNG export markets in Louisiana and Texas
12000
10000
LNG Exports
8000
Industrial
6000
Power
R&C
4000
Storage
2000
0
2014
2017
2020
2023
Midwest Demand - Mmcf/d
14000
12000
10000
Industrial
8000
Power
6000
R&C
4000
Storage
2000
0
2014
2017
2020
2023
Ontario Demand - Mmcf/d
14000
12000
10000
Industrial
8000
Power
6000
R&C
4000
Storage
2000
ANR Southwest
0
2014
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2017
2020
2023
ALLOCATION OF PROJECT CAPACITY
Should interest for capacity resulting from this Open Season exceed the Project Capacities listed;
ANR will consider an increase in the Project capacity or implement a procedure to allocate the
Project capacity as proposed on a not unduly discriminatory basis with those parties who execute
binding Precedent Agreements.
ACKNOWLEDGEMENT OF OPEN SEASON RESPONDENTS
ANR will acknowledge receipt of all respondents expressing interest in the capacity being offered
in this Open Season in a timely manner. This Open Season is subject to all applicable laws,
orders, rules, and regulations and authorities having jurisdiction.
LIMITATIONS AND RESERVATIONS
ANR reserves the right to decline to proceed, in part or in whole, with either or both the Gulf
Coast or Midwest Market Access projects. ANR reserves the right to proceed with multiple
projects as may be defined through negotiations. ANR reserves the right to negotiate with only
shippers who submit an Expression of Interest Form in response to this Open Season but also
reserves the right to negotiate with other potential shippers if there is additional capacity available
in the project or such negotiations could lead to an enhanced project.
SOLICITATION OF TURNBACK CAPACITY
ANR requests that any shipper who currently holds firm transportation capacity along the paths
mentioned in this Open Season notify ANR in writing, by the end of this Open Season, if it
wishes to turn back its capacity (“Turnback Capacity”). Such notification must specify the
contract number, primary receipt and delivery points, and the volume the shipper is offering to
turn back. ANR will consider and evaluate offers of Turnback Capacity which satisfy services
similar to those proposed herein in terms of location, term, and price.
EXPRESSIONS OF INTEREST
Parties wishing to submit an expression of interest (“EOI”) during the Open Season must submit a
completed Expression of Interest Form (as attached) by mail, by email attachment or by facsimile.
All EOI’s must be received by ANR prior to the close of the Open Season described above.
EOI’s must be mailed, emailed or faxed to:
MAIL:
E-mail:
Fax:
ANR PIPELINE COMPANY
700 LOUISIANA STREET, SUITE 700
HOUSTON, TX 77002-2700
ATTN: DANIEL ANDRUCCIOLI (832) 320-5451 [Office]
ANR BUSINESS DEVELOPMENT
[email protected]
(832) 320-6451
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ANR PIPELINE COMPANY
GULF COAST AND MIDWEST MARKET ACCESS
OPEN SEASON
EXPRESSION OF INTEREST FORM
Send to:
ANR Pipeline Company
700 Louisiana Street, Suite 700
Houston, TX 77002-2700
Attn: Mr. Daniel Andruccioli
Forward via e-mail to [email protected], or fax, to Dan Andruccioli at
(832) 320-6451 no later than 5:00 p.m. CT Tuesday, April 7, 2015.
Note: A separate EOI must be submitted for each transportation path requested.
1. For questions or comments please contact Daniel Andruccioli at (832) 320-5451.
2. Respondent Information:
Name:
Address:
Telephone:
Facsimile:
____________________________
____________________________
____________________________
____________________________
3. Name and title of duly authorized officer:
Name:
Title:
____________________________
_____________________________
4. Service Commencement Date Requested:
Service End Date Requested:
______________________
______________________
5. Type of Service Requested:
FTS-1
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ANR PIPELINE COMPANY
GULF COAST AND MIDWEST MARKET ACCESS
OPEN SEASON
EXPRESSION OF INTEREST FORM-continued
6. Transportation Service Requested
Firm Receipt Point
7.
Firm Delivery Point
Contract
Quantity
(Dth/day)
Minimum
Pro-rata
Quantity
(Dth/day)
Additional information/comments in support of request:
______________________________________________________________
______________________________________________________________
THIS EXPRESSION OF INTEREST FORM IS HEREBY SUBMITTED:
By: __________________________________________________________
Title: ________________________________________________________
Company: ____________________________________________________
Telephone Number: ____________________________________________
Email Address: ________________________________________________
Facsimile Number: _____________________________________________
Date: _________________________________________________________
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