Natural Gas Pipeline Company of America (NGPL) has extended long-term firm transportation and storage contracts with its largest customer, Northern Illinois Gas Co. (Nicor), through March 31, 2006.

Beginning April 1, 2003, the Kinder Morgan Inc. (KMI) subsidiary will initially provide Nicor with up to 997,865 MMBtu/d of firm transportation service. The new agreements replace existing contracts that would have expired March 31, 2003. Beginning in the fourth quarter of this year, NGPL also will provide an additional 84,500 MMBtu/d of firm transportation service to help Nicor meet its seasonal demands this winter.

The two companies extended three other firm storage contracts totaling 40.8 Bcf. Two of the agreements take effect April 1, 2003 and continue through March 31, 2006. The third contract takes effect April 1, 2004 and continues through March 31, 2007.

NGPL, which is the largest natural gas transporter to the Chicago market, is a 10,000-mile pipeline system with peak deliverability of 5.7 Bcf/d. It is expected to contribute more than 40% of KMI’s projected cash flow this year.

Earlier this year, Horizon Pipeline, a joint venture of Nicor and NGPL, began delivering gas to northern Illinois and southern Wisconsin. The project was constructed to deliver 380 MMcf/d (see Daily GPI, May 15).

©Copyright 2002 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.