December 2, 2009 / 9:17 PM / 9 years ago

UPDATE 1-Enbridge says still plans LaCrosse pipeline

* LaCrosse pipeline open season unsuccessful

* Enbridge now talking to individual shippers

* Says Texas to Louisiana gas line still viable

* Expects to file for Northern Gateway in Q1, 2010

CALGARY, Alberta, Dec 2 (Reuters) - Enbridge Inc (ENB.TO) said on Wednesday it is still looking to build the LaCrosse pipeline to take natural gas from the burgeoning Haynesville shale gas region in Texas and Louisiana, though a open season held to gauge shipper interest didn’t garner enough support.

Pat Daniel, chief executive of Canada’s No. 2 pipeline company, said that Enbridge is now talking to individual parties as it looks to drum up needed volumes to support the 1-billion cubic feet per day line from Enbridge’s Carthage Hub in Texas to an interconnection with a Louisiana line.

“We ran a very short formal open season and did not get the level of commitment that we need in order to proceed with the project at this point in time,” Daniel said on a conference call. “However, there were some very encouraging indications during that open season and we are now entering into discussions ... to try to promote the volumes we need to make the project commercial.”

Pipeline companies stage open seasons for planned lines to gauge interest from shippers that would use the line.

Despite the unsuccessful open season, Daniel said he was hopeful that as gas markets improve, customers will commit enough gas to LaCrosse for the project to proceed.

“LaCrosse is still alive and well,” he said.

Daniel also said that the company planned to file for regulatory approval of its 525,000 barrel per day Northern Gateway pipeline in the first quarter of next year.

The company had expected to file for clearance to build the line from Alberta’s oil sands to a port on the British Columbia’s northern Pacific Coast but is awaiting for a regulatory panel to issue terms of reference for the application. (Reporting by Scott Haggett; editing by Peter Galloway) ((; Reuters Messaging:; +1 403 531-1622))

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