Engage, Southern Enter into Conversion Deal
Under a five-year tolling agreement announced last week with
Houston-based Engage Energy, Southern Company Energy Marketing has
agreed to convert natural gas supplied by Engage into 300 MW of
electricity. The agreement allows Engage to sell the electricity
following its conversion, which will be done at a power plant
currently under construction in Zeeland, MI. The plant, being
constructed by Southern Company Energy Marketing's parent, Southern
Energy, is expected to begin operations by mid-2001.
"The purchase of this tolling capacity from Southern Company
Energy Marketing supports Engage's objective of acquiring strategic
resources in core market regions," said Engage CEO Clark C. Smith.
"This capacity will enhance Engage's ability to customize power and
natural gas products in Michigan and the upper Midwest markets."
Atlanta-based Southern Energy began constructing the natural-gas fired plant
in Zeeland in May, and it will use advanced natural gas combined-cycle technology
and state-of-the-art emission control equipment (see NGI, May
15).Initially, it will have 300 MW of capacity, and an additional 530
MW will begin commercial operation by June 2003. Semco Energy plans to build
the natural gas line to serve the facility, connecting the plant with ANR
Pipeline's interstate mainline system.
When the Zeeland plant begins operation, along with another
550-MW plant in Arkansas currently being constructed, Southern
Energy will top more than 10,000 MW in power-generation capacity it
owns or controls in the United States. The company develops,
builds, owns and operates power production and delivery facilities,
and also offers other services to utilities and industrial
Engage is a joint venture of The Coastal Corp., based in
Houston, and Westcoast Energy Inc. in Vancouver, BC. It offers
natural gas and electricity sales and trading services, energy
management, structured storage and transportation services, power
management and energy risk management services.
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