NGPL Plans Lateral to Serve Illinois Power in St. Louis
Natural Gas Pipeline Company of America (NGPL) announced plans
to build a new 47-mile, 24-inch diameter pipeline lateral into St.
Louis to serve Illinois Power's gas distribution system. The $35
million project, which is anchored by a contract with Illinois
Power affiliate Dynegy Marketing and Trade, will add at least
300,000 Dth/d of gas transportation capacity to the St. Louis
"The pipeline project and related agreements ideally demonstrate
our ongoing strategy to expand our natural gas pipeline services
into growing markets currently not connected to NGPL and to
increase throughput on our system by adding electric load to our
extensive pipeline network," said Richard D. Kinder, CEO of Kinder
Morgan Inc., the parent company of NGPL.
The new lateral will extend from Centralia, IL, to a point on
Illinois Power's gas distribution system in the East St. Louis
market. The project is scheduled for completion in June of 2002.
NGPL and Dynegy entered into a number of long-term, gas
transportation and storage contracts, including a 10-year agreement
effective June 1, 2002, which will provide Dynegy with 90,000 Dth/d
of gas via the new pipeline. In addition, NGPL and Dynegy entered
into various other firm transportation agreements totaling another
98,000 Dth/d of gas sourced from NGPL's Gulf Coast and Amarillo
lines beginning as early as Dec. 1, 2000.
The NGPL project effectively creates a new supplier for a
geographical area that until now has been served by just one
natural gas transportation company [Mississippi River
Transmission], according to Larry F. Altenbaumer, president of
Illinois Power. "This new connection to Illinois Power's system
will help open competitive opportunities to natural gas customers
in the metro east area of St. Louis. It not only provides for a new
delivery point to service customers directly, but also to fuel
electric generation in the area.
"The 10-year agreement to provide firm transportation service to
Dynegy provides us a solid anchor customer for the pipeline
project," said Deb Macdonald, president of NGPL. NGPL intends to
solicit expressions of interest from other shippers in December and
January. The results of the open season will determine the final
scope of the project.
"With Dynegy as our anchor customer, we will build the new
lateral into the St. Louis market regardless of whether we receive
other expressions of interest," said Macdonald. "We anticipate a
strong response, however, given the size of the market and the
potential for additional gas-fired power generation."
Interested shippers should contact Mark Menis, NGPL's director
of business development, at (630) 691-3347.
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