Kinder Morgan’s Natural Gas Pipeline Company of America (NGPL)has fully subscribed its storage service with the latest of anumber of deals.

NGPL signed storage contracts for 25 Bcf of firm nominatedservice. Most of the capacity was awarded under two separatethree-year contracts. NGPL’s nominated storage service has capacityof 130 Bcf and is now fully subscribed until at least Jan. 1.

“These long-term storage transactions, combined with thepreviously announced rollover and new transportation and storageservices contracts, signify that our back-to-basics strategy tofocus on our core pipeline businesses is paying off,” said CEORichard D. Kinder.

In January, NGPL signed three- and five-year contracts with PeoplesGas, Light and Coke and North Shore Gas – subsidiaries of longtimecustomer Peoples Energy – for more than 200,000 MMBtu/d of firmtransportation, plus storage (see Daily GPI, Jan. 6). Under a contract running fromJan. 1, 2000 through April 30, 2005 NGPL will provide Peoples with114,000 MMBtu/d of firm capacity. A second pact for three years willgive Peoples 90,000 MMBtu/d of FT and 10 Bcf of storage. The companiesalso signed a letter of intent, subject to NGPL’s capacity awardprocedures, to provide Peoples with 89,000 MMBtu/d of FT and 9.3 Bcfof storage from April 1, 2000 through April 30, 2003.

The contracts are the latest of several long-term firm pactsNGPL has pursued successfully in advance of the delivery date ofits newest rival, Alliance Pipeline, due into Chicago from CanadaOct. 1.

Last October another major NGPL customer, Nicor Gas, parent ofNorthern Illinois Gas signed a three-year contract (see Daily GPI, Oct. 1). The agreement, effective April 1,covers 1 million MMBtu/d (or about 970 MMcf/d), includes Nicor’sentire storage and transportation portfolio and accounts for nearlyone-third of the firm transportation that NGPL provides to the Chicagoarea.

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