trending Market Intelligence /marketintelligence/en/news-insights/trending/uLS3juSwKaYhI-pLf1rjDw2 content esgSubNav
In This List

ANR Pipeline to acquire affiliate's Mich. gas storage facilities

Podcast

Next in Tech | Episode 49: Carbon reduction in cloud

Blog

Using ESG Analysis to Support a Sustainable Future

Research

US utility commissioners: Who they are and how they impact regulation

Blog

Q&A: Datacenters: Energy Hogs or Sustainability Helpers?


ANR Pipeline to acquire affiliate's Mich. gas storage facilities

ANR Pipeline Co. asked the Federal Energy Regulatory Commission to allow it to acquire natural gas storage facilities and base gas in central Michigan that it currently leases from affiliate Mid Michigan Gas Storage Co., which ANR said would ensure stability for both it and its gas transportation and storage customers.

In the Oct. 1 abbreviated application, ANR, a TC Energy Corp. subsidiary, asked for authorization that would allow the transfer ownership of assets at the Austin, Goodwell, Lincoln-Freeman, Loreed, and Reed City storage fields. ANR asked FERC to grant the authorization by Feb. 29, 2020.

ANR operates 10 natural gas storage fields in Michigan. Five are owned by ANR, and five are leased from Mid Michigan. The combined working gas storage capacity of all these fields is about 135 Bcf, of which 81 Bcf, or 60% of the total, is in the leased facilities.

The proposed transfer of ownership would leave ANR as owner with direct control over all the leased facilities and the base gas. The leased fields provide a certificated maximum daily withdrawal quantity of 2,836 MMcf/d, and ANR's design day uses 1,132 MMcf/d of withdrawal capacity from these fields.

"The cost to ANR of acquiring the leased facilities at net book value and of transitioning to ANR ownership of an equivalent quantity of base gas would be significantly lower than the cost to develop new greenfield storage fields to replace the leased capacity," ANR said in the application. The company listed the land assets of the leased fields at a value of more than $1.6 million in an exhibit. It said other assets, including storage reservoirs, wells, pipelines and surface equipment, have a net book value of zero after fully depreciating for over 15 years.

According to the application, Mid Michigan decided to sell the storage assets it leases to ANR after an evaluation of its assets and business model. (FERC docket CP20-1)

In November 2011, ANR requested authorization to allow it to increase natural gas storage levels and working capacity at a Michigan storage field, Cold Springs 1. (FERC docket CP12-12)

In other maneuvers among the owners of gas storage facilities, Gulf South Pipeline Co. LP and Enable Gas Transmission LLC on Sept. 23 asked FERC for authorizations that would let Enable sell its interest in a Louisiana gas storage facility to Gulf South. The sale would transfer 17.5 Bcf of total storage capacity in the 141-Bcf field, as well as 100,000 MMcf/d of withdrawal capacity. (FERC docket CP19-511)

SNL Image