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KN Holding Open Season for Horizon Project

KN Holding Open Season for Horizon Project

KN Energy signed Nicor Gas of Illinois up for 300 MMcf/d of capacity on its Horizon Pipeline and began an open season for the project.

The 36-inch, 129-mile, high-pressure pipeline from Joliet, IL, to Hales Corners, WI, would have capacity of up to 1.2 Bcf/d upon completion, which is expected in fall 2001. The estimated cost is $150 million to $250 million, depending on shipper response and design capacity. The open season for firm capacity began Thursday and extends through 5 p.m., CDT, Friday, June 25.

"The Horizon Pipeline will accommodate the continued growth and increasing need for additional gas supply and competitively priced storage and hub services in northern Illinois and southern Wisconsin," said Rick Wells, KN executive vice president. "Nicor Gas' readiness to sign on and its level of commitment demonstrate the value that this project brings to the Midwest."

Horizon would begin at the emerging gas supply hub near Joliet, where the interconnection of several pipelines offers access to gas supply and a variety of storage and hub services. The pipeline would connect with Natural Gas Pipeline Company of America (NGPL), a subsidiary of KN Energy, and with Nicor Gas and the new Alliance Pipeline. Potential connections to other pipelines are being reviewed. NGPL would operate Horizon, and KN plans to jointly own the pipeline with one or more other partners. Horizon would use about 45 miles of existing 36-inch pipeline and plans to use a significant amount of existing electric transmission right-of-way.

KN announced Horizon May 5 (see Daily GPI May 6, 1999). Scott Parker, KN director of business development, said the company already has a strong relationship with customers who could use the new pipe as it serves southern Wisconsin through NGPL already. He said KN is talking to Wisconsin LDCs and is eyeing the potential for power generation load in the region.

Horizon could deliver gas to Wisconsin Electric Power's system in Milwaukee and Racine counties, WI, and NGPL's and Nicor Gas' systems in McHenry County, IL. There is potential to connect to North Shore Gas Co. in Cook and Lake counties, IL. Based on potential shipper demand, Wisconsin Gas' distribution system can be connected with the addition of a short lateral.

Wisconsin Gas, however, already has signed up for 650 MMcf/d of firm capacity on the competing Guardian Pipeline, another new interstate line planned to serve northern Illinois and southern Wisconsin. Others have tried targeting the Wisconsin market and failed. The Illinois-Wisconsin Express Project - backed by Peoples Energy, Northern Border, El Paso Energy, and Enron - is on indefinite hold. TransCanada PipeLines and Nicor Inc. scrapped plans for their reconfigured Voyageur Pipeline late last year. Peoples Energy and Northern Border have signaled they may go ahead with a Wisconsin project on their own.

Meanwhile, Coastal's ANR in March applied to the Federal Energy Regulatory Commission for another expansion of its Wisconsin system to add nearly 200 MMcf/d of capacity for in-service November 2000.

For information on the Horizon open season, call (630) 691-3689.

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