El Dorado, AR is about to become much bigger and brighter on themap. Dallas-based Panda Energy International has moved one stepcloser in the process of creating what will be the largest naturalgas-fired power plant in the country. Panda announced that it hassecured transportation to meet the plant’s daily natural gas needs.

Panda Energy’s affiliate Union Power Partners, and its pipelineaffiliate, Trans-Union Interstate Pipeline, have signed atransportation and interconnection agreement with El Paso FieldServices’ subsidiary, Gulf States Pipeline. Union Power Partnershas also signed firm transportation agreements with Tennessee GasPipeline, a business of El Paso Energy.

The 2,720 MW plant is to be fed by a 42-mile, 30-inch pipelinethat Trans-Union would build. The line would connect the El Doradoplant and the Gulf States Pipeline in Sharon, LA. Union PowerPartners will be able to access gas basins in Texas, Louisiana, andOklahoma. The Federal Energy Regulatory Commission has had thenecessary filings since Dec. 1999, and a ruling on the proposedline is expected later this summer. (see Daily GPI, Feb. 24)

Located on a 310-acre site, the plant will be near the EntergyCorp. system and a 500 kv switching station. This arrangement willallow Panda to sell power to markets in Louisiana, Texas, andArkansas.

Expected to be completely on-line in the spring of 2002, the newplant will receive deliveries of 430,000 MMBtu/d. These agreements,are a “critical link” in the foundation of getting the plant up andrunning, said Panda CEO Robert W. Carter. “Reliable delivery offuel is one of the most important aspects of this, and any other,power plant.” Carter explained that there would be an average of700 workers, with a peak of 1,200, working during the constructionphases of the plant. Once the plant is fully operational, therewill be a full-time staff of about 65 people. The estimated totalcost of the plant is in excess of $400 million.

The need for this plant is evident; the area was plagued bybrownouts last summer, and most of what the region has running forpower generation are aging coal and oil units. “We are pleased toenhance our strong relationship with Panda by providing the primarynatural gas delivery service to their new El Dorado power plant,”said Robert G. Phillips, president of El Paso Field Services.

Alexander Steis

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