Kinder Morgan Energy Partners LP will provide pipelinetransportation services for Aux Sable Liquid Products LP in theChicago area for liquids from Alliance Pipeline. Aux Sable isconstructing natural gas liquids (NGL) extraction and fractionationfacilities in Channahon, IL, about two miles east of KinderMorgan’s Morris, IL, liquids pipeline, storage and truck loadingfacility. Aux Sable’s facilities will initially process up to 1.6Bcf/d from Alliance and remove from the gas stream up to 40,000barrels of ethane, 19,000 barrels of propane, 8,000 barrels ofbutane (both normal butane and isobutane) and 3,000 barrels ofnatural gasoline. The facilities are targeted for completion byOct. 1, 2000.

Kinder Morgan will modify its pipeline system and its Morris andLemont, IL, facilities to transport NGLs Aux Sable extracts fromthe Alliance system. Kinder Morgan plans to complete modificationsby Oct. 1, 2000.

“We hope to obviously move most of the NGLs in that immediateChicago area,” said Larry Payne, Aux Sable general manager. Some ofthe propane will move out of a private terminal south of Chicago tovarious customers on the Texas Eastern Transmission productspipeline. Some product will move through the old MAPCO (MidAmerican Pipeline) system, now a part of Williams.

A majority of the NGLs will be sold under contract with spotsales used for balancing, Payne said, with most of the contracts tobe written around March.

“This will complete another step in the process of Aux Sablebecoming a major supplier of natural gas liquids in the area withtransportation in place to provide reliable service to customers,”said Payne. “We are likewise delighted to play an integral role inAux Sable’s project in the Chicago area”, said Rich Kinder, CEO ofKinder Morgan.

Kinder Morgan, which has an enterprise value of about $2.9billion, owns and operates one of the largest product pipelinesystems in the nation, spanning sixteen states with more than 5,000miles of pipeline and twenty associated terminals.

Aux Sable Liquid Products LP through its managing generalpartner, Aux Sable Liquid Products Inc., will operate theprocessing plant and handle marketing of all production from theplant. Gas for the facility will be delivered through theaffiliated Alliance Pipeline system originating in western Canada.

Investors in the Aux Sable Liquid Products LP include affiliatesof Duke Energy Corp., Enbridge Inc., Fort Chicago Energy PartnersLP, The Coastal Corp., The Williams Companies Inc., and WestcoastEnergy Inc.

©Copyright 1999 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.