Vector Pipeline Plans to Further Expand Natural Gas Pipeline Capacity

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Researched by Industrial Info Resources (Sugar Land, Texas)--Vector Pipeline LP (Livonia, Michigan), a joint venture company of Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta) and DTE Energy Company (NYSE:DTE) (Detroit, Michigan), is planning to spend $36.6 million to expand its main line natural gas capacity by constructing and improving pipeline facilities in Michigan and Indiana. The project will focus on the installation of new compression and reworking existing compression and will not require the construction of any new pipeline mileage.

The Athens Compressor Project involves building a new natural gas compressor station near Marshall, Michigan, as well as making modifications to the existing Highland compressor station near Highland, Michigan, and Springville compressor station near La Porte, Indiana. The new compressor station will utilize a single 15,000-horsepower Solar Mars T-100 compressor package. The work at the existing compressor stations entails restaging the existing compressor wheels for both Solar Mars turbine units at each station and modifications to the station yard high pressure piping. This work is necessary in order to configure the existing gas compressor units to run in parallel mode as opposed to operating in a series mode for which the current compressors are currently configured.

Vector Pipeline LP has awarded the engineering and design contract for the Athens Compressor Expansion project to Audubon Engineering Company LP (Houston, Texas). Vector expects to complete the Federal Energy Regulatory Commission permitting process and begin construction on the project in April 2009. A completion and in-service date for the Athens Compressor Project is targeted for November 2009.

The plans for the Athens Compressor Project come on the heels of Vector Pipeline LP completion and placing into service on November 13, 2007, of the two new compressor stations of Joliet, Illinois, and Washington, Michigan. When complete, the Athens Compressor Project will increase the pipeline's long-haul natural gas capacity by approximately 105 million cubic feet per day (mmcfd), taking the long-haul capacity of the pipeline to approximately 1,275 mmscfd.

Vector Pipeline has entered into precedent agreements with three shippers for the new capacity. The three shippers are BP Canada Energy Marketing Corporation, Merrill Lynch Commodities Incorporated and Nexen Marketing U.S.A. Incorporated.

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