Undeterred by those who have gone before it and failed, KNEnergy jumped into the fray with a pipeline project to servenorthern Illinois and southern Wisconsin.

The Horizon Pipeline would be a 129-mile, high-pressure linefrom Joliet, IL, to Hales Corners, WI. The 36-inch pipeline wouldtransport between 630 MMcf/d and 1.2 Bcf/d upon completion, whichis proposed for fall 2001. Construction is to begin in spring 2001,and the estimated cost is $150 million to $250 million, dependingon shipper response and design capacity.

Horizon Pipeline would begin at the emerging gas supply hub nearJoliet, where the interconnection of several pipelines offersaccess to gas supply and a variety of storage and hub services. Thepipeline would connect with Natural Gas Pipeline Company of America(NGPL), a subsidiary of KN Energy, and with Nicor Gas and theAlliance Pipeline. Potential connections to other pipelines arebeing reviewed. NGPL would operate Horizon, and KN plans to jointlyown the pipeline with one or more other partners.

“We’re proposing Horizon Pipeline to accommodate the continuedgrowth and increasing need for additional gas supply in northernIllinois and southern Wisconsin,” said Rick Wells, KN executivevice president. “This project brings additional natural gas, supplydiversity and competitive storage services into a fast-growingregion of the Midwest. The proposed pipeline will make use of agreat deal of existing infrastructure of pipe systems, equipmentand rights-of-way which will help keep costs down and minimizeenvironmental impact.”

Scott Parker, KN director of business development, said thecompany already has a strong relationship with customers who coulduse 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. He would notspeculate on what percentage of Horizon throughput could end upserving power generators. As Horizon is a stand-alone pipeline, itwill have its own tariff with rates yet to be determined, Parkersaid. “We’re going to be extremely competitive..”

By using existing facilities and rights-of-way and minimizingnew pipe, Horizon would be able to deliver gas to WisconsinElectric Power Co.’s system in Milwaukee and Racine counties, WI,and NGPL’s and Nicor Gas’ systems in McHenry County, IL. Inaddition, there is potential to connect to North Shore Gas Co.’ssystem in Cook and Lake counties, IL. Based on potential shipperdemand, Wisconsin Gas’ distribution system can be connected withthe 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. Guardian is holding an open season through June 3. Thepipeline would have a minimum capacity of 650 MMcf/d and would beexpandable, depending on the market, to up to 1.1 Bcf/d. Theproject’s planned in-service date is Nov. 1, 2002. Guardian wouldtransport gas from interconnections with Alliance, Northern Border,NICOR, Midwestern, NGPL and the proposed Tristate Pipeline nearJoliet, IL, to the Watertown, WI, area. The project is jointlyowned by WICOR, CMS Energy Corp. and Viking Gas Transmission, witheach holding a one-third interest.

Others have tried targeting the Wisconsin market and failed. TheIllinois-Wisconsin Express Project – backed by Peoples Energy,Northern Border, El Paso Energy, and Enron – has been put onindefinite hold. And TransCanada PipeLines and Nicor Inc. late lastyear scrapped plans for their reconfigured Voyageur Pipeline (see Daily GPI Nov. 5, 1998). Peoples Energy andNorthern Border have given signals they might go ahead with aWisconsin project on their own.

Meanwhile, Coastal’s ANR in March applied to the Federal EnergyRegulatory Commission for another expansion of its Wisconsin system toadd nearly 200 MMcf/d of capacity for in-service November 2000 (see Daily GPI March 9, 1999).

A Horizon open season will begin this month. Shippers seekingadditional information on the project can contact Scott Parker, KNdirector of business development, at (630) 691-3689.

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