Trunkline Gas Plans to Construct Natural Gas Interconnection with Vector Pipeline in Michigan

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Researched by Industrial Info Resources (Sugar Land, Texas)--Trunkline Gas Company LLC (Houston, Texas), a business unit of Panhandle Energy (Houston), a subsidiary of Southern Union Company (NYSE:SUG ) (Houston), is studying the economic feasibility and shipper support to construct a pipeline lateral to connect its pipeline system with the Vector Pipeline system in Michigan. If constructed, the VectorConnector project will allow Trunkline to be capable of bidirectional gas flow between the upper Midwest and the Gulf Coast depending on the prevailing market conditions.

The proposed VectorConnector project would involve the construction of 16 miles of 24-inch-diameter natural gas transmission pipelines from its Elkhart, Indiana, metering station to Saint Joseph County, Michigan. The $45 million pipeline will have an initial capacity of 200 million cubic feet per day (mmcfd) to 400 mmcfd but could still be as high as 600 mmcfd of natural gas capacity, which would require a 30-inch-diameter pipeline.

Trunkline expects to file with the Federal Energy Regulatory Commission in the first quarter of 2008. Construction on the project should begin in the second quarter of 2009 with a November 2009 completion date.

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