Guardian Pipeline reported it has closed its $180 million project financing that was arranged by Prudential Capital Group for the construction of the 142-mile, 36-inch diameter pipe extending from Joliet to the Ixonia, WI, area. Prudential provided $125 million of the project financing, with GE Capital funding the remaining $55 million.

With the 20-year financing out of the way, Guardian said construction can begin next spring, following completion of land and right of way acquisition. “Guardian Pipeline is continuing to make steady progress,” said George Hass, project manager. “This closing of project financing keeps Guardian on track to meet its scheduled in-service date of November 2002.”

Hass said the first 20 miles of steel pipe sections have already been manufactured and delivered to Serena, IL. He added that a Guardian Pipeline compressor station site has been acquired in Joliet, IL, and preliminary site work will begin soon, prior to full construction of the compressor station. Land acquisition work is also currently underway in both Wisconsin and Illinois.

First announced in March 1999 (see Daily GPI, March 11, 1999), the Guardian Pipeline will transport natural gas from interconnections with Alliance, Northern Border, Midwestern Gas Transmission, and Natural Gas Pipeline of America at the Chicago hub near Joliet, IL, to northern Illinois and southern Wisconsin markets. The project will consist of 22,225 hp compression. The Public Service Commission of Wisconsin has approved a lateral pipeline connecting Guardian with the Wisconsin Gas system.

The pipeline currently has firm precedent agreements with Wisconsin Gas and others to transport 662 MMcf/d (88% of capacity) when the pipeline goes into service in November 2002.

Guardian Pipeline is a partnership of three Midwestern energy companies, Dearborn, MI-based CMS Energy, Milwaukee, WI-based WICOR, a subsidiary of Wisconsin Energy, and St. Paul, MN-based Viking Gas Transmission, a subsidiary of Xcel Energy Inc.

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