Kinder Morgan to Move Aux Sable Liquids
Kinder Morgan Energy Partners LP will provide pipeline
transportation services for Aux Sable Liquid Products LP in the
Chicago area for liquids from Alliance Pipeline. Aux Sable is
constructing natural gas liquids (NGL) extraction and fractionation
facilities in Channahon, IL, about two miles east of Kinder
Morgan's Morris, IL, liquids pipeline, storage and truck loading
facility. Aux Sable's facilities will initially process up to 1.6
Bcf/d from Alliance and remove from the gas stream up to 40,000
barrels of ethane, 19,000 barrels of propane, 8,000 barrels of
butane (both normal butane and isobutane) and 3,000 barrels of
natural gasoline. The facilities are targeted for completion by
Oct. 1, 2000.
Kinder Morgan will modify its pipeline system and its Morris and
Lemont, IL, facilities to transport NGLs Aux Sable extracts from
the Alliance system. Kinder Morgan plans to complete modifications
by Oct. 1, 2000.
"We hope to obviously move most of the NGLs in that immediate
Chicago area," said Larry Payne, Aux Sable general manager. Some of
the propane will move out of a private terminal south of Chicago to
various customers on the Texas Eastern Transmission products
pipeline. Some product will move through the old MAPCO (Mid
American Pipeline) system, now a part of Williams.
A majority of the NGLs will be sold under contract with spot
sales used for balancing, Payne said, with most of the contracts to
be written around March.
"This will complete another step in the process of Aux Sable
becoming a major supplier of natural gas liquids in the area with
transportation in place to provide reliable service to customers,"
said Payne. "We are likewise delighted to play an integral role in
Aux Sable's project in the Chicago area," said Rich Kinder, CEO of
Kinder Morgan, which has an enterprise value of about $2.9
billion, owns and operates one of the largest product pipeline
systems in the nation, spanning 16 states with more than 5,000
miles of pipeline and twenty associated terminals.
Aux Sable Liquid Products LP through its managing general
partner, Aux Sable Liquid Products Inc., will operate the
processing plant and handle marketing of all production from the
plant. Gas for the facility will be delivered through the
affiliated Alliance Pipeline system originating in western Canada.
Investors in the Aux Sable Liquid Products LP include affiliates
of Duke Energy Corp., Enbridge Inc., Fort Chicago Energy Partners
LP, The Coastal Corp., The Williams Companies Inc., and Westcoast