Natural Gas Pipeline Company of America LLC (NGPL) is holding a binding open season through Nov. 17 for the potential expansion of its Gulf Coast mainline system from the Rockies Express Pipeline (REX) interconnection in Moultrie County, IL, to points north on NGPL's system.
The project joins another just announced that would serve the same market with gas from a REX interconnect.
"Increased gas production from the Utica and Marcellus shales, combined with unique access to markets in Chicago, Joliet and northwest Indiana, make this project the most affordable and economic choice to meet the needs of producers, local distribution companies, marketers and end-use customers," the pipeline said in open season documents. "NGPL's system, with over 5.5 Bcf/d of pipeline and storage deliverability, can provide access to numerous market area delivery points through existing and expansion capacity."
The expansion would increase NGPL's capacity by up to 450,000 Dth/d and provide for incremental firm service to markets in and near Chicago, IL, in NGPL's Market Delivery Zone. The $100 million expansion would consist of the installation of a compressor station along the pipeline's market area system, with an expected in-service date of Nov. 1, 2016.
"This project will enable Chicago-area markets to diversify their gas supply portfolios and access additional prolific gas production from the Utica and Marcellus shale areas, while enhancing reliability and providing the most cost-effective solution in the marketplace," said Kinder Morgan's David Devine, president of central region natural gas pipelines.
"The project provides unparalleled access to more than 100 of NGPL's interconnects with Chicago-area local distribution companies, direct-connect power plants, industrial end-users, interstate pipelines, and NGPL's storage and highly liquid pooling points."
The NGPL-REX Moultrie interconnect is slated for expansion in a Federal Energy Regulatory Commission filing by REX [CP14-498] to 1,750,000 Dth/d.
"With the addition of these facilities, NGPL expects to be able to provide incremental northbound firm transportation capacity of approximately 280,000 Dth/d to 450,000 Dth/d from the REX Moultrie interconnect to markets in and near Chicago, IL, in its Market Delivery Zone, that includes major LDCs (Nicor Gas, Peoples Gas Light & Coke, North Shore, Ameren, Northern Indiana Public Service Co.) and interstate pipelines, direct connect power plants and industrial customers," the pipeline said.
NGPL's open season comes on the heels of a proposal from Tallgrass Development LP and AGL Resources Inc. for the 140-mile, 1.2-1.5 Bcf/d Prairie State Pipeline to connect the Illinois and Midwest markets with natural gas from the Rockies, Midcontinent, Gulf Coast as well as growing Appalachian Basin shale plays. This project also would rely on a connection with REX to serve demand from the same slate of utilities (see Daily GPI, Oct. 14).
For information on the NGPL open season, contact Mark Menis, director of business development, at email@example.com or (630) 725-3107, or visit www.kindermorgan.com.