NEW YORK, Sept 14 Trunkline, a unit of Energy
Transfer Partners rejected end user claims that its
planned conversion of a natural gas pipeline to carry crude oil
would lead to supply shortages, according to a filing made on
Friday with federal regulators.
Energy Transfer Partners is the latest entrant in the race
to carry growing amounts of crude from the northern United
States and Canada to the U.S. refinery row along the Gulf Coast
by converting a natural gas pipeline to carry crude oil.
Earlier in the week, Michigan filed a motion with the
Federal Energy Regulatory Commission (FERC) against the
"Trunkline's natural gas delivery capacity into the state of
Michigan will remain the same both before and after the proposed
abandonment," the company said in a filing with FERC.
Trunkline also said it has no firm shipper commitment for
natural gas at tariff rates.
On July 26, 2012, Trunkline filed an application with FERC
to order the abandonment of approximately 770 miles of looped
mainline transmission pipeline.
The line currently carries natural gas from Buna, Texas to
Tucola, Illinois. The company plans to sell the line, reverse
it, and convert it to carry crude oil from various other
Midwestern pipelines down to the U.S. Gulf Coast refineries.
There is no indication of the size of the crude line
envisioned or a timetable for the conversion.
About 800,000 barrels of crude pipeline capacity is expected
to come online in the next year to relieve the glut of crude
growing in the Midwest.
A spokeswoman for the company was not available for comment.