Enogex Interstate Transmission has filed an application withFERC to integrate and expand the recently purchased assets of OzarkGas Transmission, an interstate pipeline, and NOARK, an intrastate,into a new 749-mile Midcontinent interstate pipeline system. Theproject is designed to give NOARK customers greatly needed accessto new gas supplies, while providing Ozark shippers access todesperately needed new markets. Enogex, an interstate pipelinesubsidiary of Oklahoma City-based OGE Energy, recently purchasedOzark from NGC Corp. for more than $55 million and bought amajority interest in the NOARK Pipeline from Prudential Insuranceand a SEMCO Energy subsidiary for $30 million.

Currently the 186-mile NOARK system, which runs to Clay County,AR, from Sebastian County, is capacity constrained. SouthwesternLDC affiliates Arkansas Western Gas Co. and Associated Natural GasCo. are experiencing growing demand for gas. Meanwhile, the266-mile Ozark system, which runs to White County, AR, fromPittsburg County, OK, is underutilized. It connects with threeinterstate pipelines (Natural Gas Pipeline Company, Texas Easternand Mississippi River Transmission) and one LDC, Arkansas OklahomaGas.

The new system would involve construction of two small crossoverlines and installation of 10,000 hp of new compression at a cost ofabout $20 million. It would increase the operational flexibility ofthe systems while raising total capacity by 11% to 330 MMcf/d.Enogex said four shippers have signed new contracts for 150,000Dth/d of capacity. Rates and services would remain the same forexisting NOARK and Ozark shippers. Enogex Interstate, which willchange its name to Ozark once the project is approved by FERC,expects to have the new interstate system operating by November.

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