Oneok Inc. plans to enter the electric generation and powermarketing businesses with an Oklahoma generating facility. Thecompany signed a contract with General Electric to buy four gasturbine generators with a capacity of 300 MW. A generation facilityencompassing the four units will be constructed and in service byJune 1, 2001.
David Kyle, president of Oneok, said, “Our focus will be toserve the electric peaking needs with natural gas-fired generationduring those times when consumption is at maximum levels. Owningnatural gas-fired power generation is a natural extension of ourcore business and provides the opportunity to expand our growingpower marketing business.”
Bill DeWare, vice president of Oneok Power Marketing, said,”Electric deregulation is opening the door of opportunity. Powershortages in the eastern part of the United States just last weekcertainly indicate the growing need for more electric generation.We know there is a need right now for more peaking capacity in theregion served by the Southwest Power Pool and we want to movequickly to establish ourselves and help meet that need. We havealready executed a 15-year letter of intent with the OklahomaMunicipal Power Authority to purchase approximately 25% of ourtotal generating capacity starting in mid-2001.”
The estimated cost of the four gas turbine generators is $70million. The new generating facility will be built near Oneok’sWest Edmond gas storage facility in Logan County, OK. The locationwill give the plant access to Oneok’s gas storage and firm electrictransmission service.
“This is a wrap-around strategy. We plan to wrap around ourexisting natural gas assets and personnel and operate at the sameaddress, using our natural gas molecule to produce electricity,”DeWare said.
©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.
© 2022 Natural Gas Intelligence. All rights reserved.
ISSN © 1532-1231 | ISSN © 2577-9877 |