NGI The Weekly Gas Market Report / NGI All News Access

NGPL Plans Lateral to Serve Illinois Power in St. Louis

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 market.

"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.

Rocco Canonica

©Copyright 2000 Intelligence Press, Inc. All rights reserved. The preceding news report may not be republished or redistributed in whole or in part without prior written consent of Intelligence Press, Inc.

Copyright ©2018 Natural Gas Intelligence - All Rights Reserved.
ISSN © 2577-9877 | ISSN © 1532-1266
Comments powered by Disqus