Expanding its current fuel management role to merchant power plants, Houston-based Noble Affiliates Inc.’s subsidiary, Noble Gas Marketing, plans to manage the fuel needs of two separate natural gas-fired power plants being constructed by Panda Energy International and TECO Power Services. The company will procure fuel for the Union Power Station in El Dorado, AR and the Gila River Power Station in Gila Bend, AZ.

Under the agreement, Noble Gas Marketing will manage transportation, nominations, scheduling and balancing and overall capacity management. It will also assist in gas acquisition, excess gas sales, transportation capacity acquisition and storage acquisition. Terms of the value and length of the agreement were not disclosed.

“Noble Gas Marketing’s ability to quickly demonstrate flexibility during the negotiation process contributed greatly to being selected as fuel manager for the two independent power plants, which are among the largest in the United States,” said Bob Burleson, Noble Gas Marketing president.

The long-awaited El Dorado plant is expected to begin commercial operation in 2002. Capacity from the plant is expected to serve wholesale customers throughout Arkansas and Louisiana, along with portions of Mississippi and Texas. The companies also reported that the plant will be able to sell power into Oklahoma, Missouri and Illinois.

The Gila facility will follow with a commercial operation timeframe of 2003. Power will be sold from the plant throughout Arizona with excess energy marketed to wholesale customers in California, Nevada and New Mexico. Combined, the power plants will cost approximately $2.2 billion to build, and are expected to generate 4,400 MW.

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