KN Energy signed Nicor Gas of Illinois up for 300 MMcf/d ofcapacity on its Horizon Pipeline and began an open season for theproject.

The 36-inch, 129-mile, high-pressure pipeline from Joliet, IL,to Hales Corners, WI, would have capacity of up to 1.2 Bcf/d uponcompletion, which is expected in fall 2001. The estimated cost is$150 million to $250 million, depending on shipper response anddesign capacity. The open season for firm capacity began Thursdayand extends through 5 p.m., CDT, Friday, June 25.

“The Horizon Pipeline will accommodate the continued growth andincreasing need for additional gas supply and competitively pricedstorage and hub services in northern Illinois and southernWisconsin,” said Rick Wells, KN executive vice president. “NicorGas’ readiness to sign on and its level of commitment demonstratethe value that this project brings to the Midwest.”

Horizon would begin at the emerging gas supply hub near Joliet,where the interconnection of several pipelines offers access to gassupply and a variety of storage and hub services. The pipelinewould connect with Natural Gas Pipeline Company of America (NGPL),a subsidiary of KN Energy, and with Nicor Gas and the new AlliancePipeline. Potential connections to other pipelines are beingreviewed. NGPL would operate Horizon, and KN plans to jointly ownthe pipeline with one or more other partners. Horizon would useabout 45 miles of existing 36-inch pipeline and plans to use asignificant amount of existing electric transmission right-of-way.

KN announced Horizon May 5 (see Daily GPIMay 6, 1999). Scott Parker, KN director of business development,said the company already has a strong relationship with customers whocould use the new pipe as it serves southern Wisconsin through NGPLalready. He said KN is talking to Wisconsin LDCs and is eyeing thepotential for power generation load in the region.

Horizon could deliver gas to Wisconsin Electric Power’s systemin Milwaukee and Racine counties, WI, and NGPL’s and Nicor Gas’systems in McHenry County, IL. There is potential to connect toNorth Shore Gas Co. in Cook and Lake counties, IL. Based onpotential shipper demand, Wisconsin Gas’ distribution system can beconnected with the addition of a short lateral.

Wisconsin Gas, however, already has signed up for 650 MMcf/d offirm capacity on the competing Guardian Pipeline, another newinterstate line planned to serve northern Illinois and southernWisconsin. Others have tried targeting the Wisconsin market andfailed. The Illinois-Wisconsin Express Project – backed by PeoplesEnergy, Northern Border, El Paso Energy, and Enron – is onindefinite hold. TransCanada PipeLines and Nicor Inc. scrappedplans for their reconfigured Voyageur Pipeline late last year.Peoples Energy and Northern Border have signaled they may go aheadwith a Wisconsin project on their own.

Meanwhile, Coastal’s ANR in March applied to the Federal EnergyRegulatory Commission for another expansion of its Wisconsin systemto add nearly 200 MMcf/d of capacity for in-service November 2000.

For information on the Horizon open season, call (630) 691-3689.

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