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
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.