CMS Buys Large LNG Shipments for Trunkline
CMS Corp.'s marketing division, CMS Marketing, Services and Trading
(MST), completed an agreement Tuesday to purchase a total of 9.3 Bcf of
liquefied natural gas (LNG) from the North West Shelf LNG project in Australia
for delivery to the CMS Trunkline LNG facility in Lake Charles, LA. Terms
of the transaction were not disclosed. The announcement marks the second
major deal CMS has struck to take advantage of its purchase of Eastern
Panhandle Pipeline and Trunkline Gas Co. from Duke Energy last year.
The shipments from North West Shelf's liquefaction facilities located
at Withnell Bay in the port of Dampier, Australia, are scheduled to load
in May, July, September and November this year, and will arrive at CMS
Trunkline LNG Company's Lake Charles, LA regasification facility approximately
30 days later. CMS-MST said it will continue to actively seek additional
long-term and short-term LNG opportunities.
"This transaction is another step in the CMS strategy to create
value from its acquisition of the Panhandle Eastern Pipeline Company, Trunkline
Gas Company and Trunkline LNG Company," said CMS Energy President
Victor J. Fryling.
CMS Energy previously announced construction of a 710 megawatt natural
gas-fueled power generating facility in Dearborn, Michigan, which will
be able to utilize natural gas transportation capacity on the Panhandle
Eastern Pipeline (See Daily GPI, Nov. 6, 1998).
"I think the Dearborn plant and this LNG deal are the two most
highly visible examples of the synergy created from our acquisition of
Panhandle and Trunkline," said Kelly Farr, a CMS spokesman. The purchases
were announced last November and the deal closed in late March.
CMS-MST has annual operating revenue of more than $1.2 billion, with
7,000 industrial and commercial customers throughout the eastern and central
United States and Canada. It markets annually about 370Bcf, seven million
MWh of electricity, and 1.2 million barrels of LNG.
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