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NorAm Buys Illini Pipeline

NorAm Buys Illini Pipeline

NorAm Interstate Pipelines bought the intrastate Illini Pipeline from Houston-based Nuevo Energy Co. Illini Pipeline operates in south central Illinois, serving customers in the East St. Louis metropolitan area. The line is about 70 miles long and has capacity up to 45,000 MMBtu/d. NorAm will continue to operate Illini as an intrastate system and expects to take over operation of the Illini system this summer.

"The acquisition of Illini is a strategic fit for NorAm," said Dale Earwood, NorAm COO. "It will grow and strengthen our pipeline system business and support our efforts to respond to growth opportunities while continuing to deliver the highest quality service possible." Illini is not currently connected to any NorAm pipes. No decision has been made on whether to connect the pipe to the NorAm system, a spokeswoman said. "We're still contemplating what our future plans are for the pipeline. We're currently focused on completing the purchase."

The pipeline is in the same market area as Mississippi River Transmission (MRT) but is not connected to that or any other NorAm pipe. Gas is delivered to the system on Natural Gas Pipeline Co. of America and goes to about five industrial customers in the metropolitan East St. Louis area. The intrastate originally was converted in the 1980s from a liquids pipeline to bypass MRT with deliveries to the industrials.

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