Expand

Egan Hub Partners, a subsidiary of NiSource, filed a request atFERC recently to expand the operating capacity of its existingstorage facility in Acadia Parish, LA from 15.5 Bcf to 21 Bcf. Thecompany wants a FERC decision by Sept. 1 so that some or all of theexpansion can be online during the 2000-2001 heating season. Egansaid the expansion is necessary because of the large number ofrequests from customers for additional storage service. It expectsthat the expanded capacity will be fully subscribed and says it canprovide the identity of customers with which it is discussingincremental service, if the Commission requests such information.The company’s two existing salt dome caverns will be enlarged from7.75 Bcf to 10.5 Bcf and compression will be added, boostingdeliverability from 750 MMcf/d to 800 MMcf/d.

Marking an evolution from a gas supply and storage partnershipforged last year, Peoples Energy Corp. and Enron North AmericaCorp. (ENA) announced plans last week to move into the Chicagopower generation market. The two companies said the jointly plan tocreate a Chicago portfolio of at least 800 MW.

Seeking to add gas sales volumes and expand the reach of its marketing operations, Aquila Energy announced last week the purchase of U.S. Gas Transportation (USGT) for an undisclosed price. Both companies expect the deal to close by the end of the month.

Dominion Resources and Peoples Energy announced plans to expandElwood Energy LLC’s peaking gas-fired power plant in Elwood, IL, byan additional 600 MW. The expansion to the state’s first merchantpower facility will double the capacity to 1,200 MW and is thesecond phase in a process that is expected to eventually bringtotal capacity of the plant to 3,100 MW.

Dominion Resources and Peoples Energy announced plans to expandElwood Energy LLC’s peaking gas-fired power plant in Elwood, IL, byan additional 600 MW. The expansion to the state’s first merchantpower facility will double the capacity to 1,200 MW and is thesecond phase in a process that is expected to eventually bringtotal capacity of the plant to 3,100 MW. The $230 million expansionwill add four General Electric 150 MW gas-fired turbines.Construction to add the high efficiency, low-emission turbines willbegin this summer and be completed during the summer of 2001, intime to meet peak summer demand. The Elwood facility is locatedadjacent to several interstate gas pipelines that provide access tocompetitively priced gas supplies. The facility’s generatorsinterconnect to a high-capacity Commonwealth Edison transmissioncorridor that provides delivery to Midwest power markets. Contractdiscussions with potential purchasers of Elwood’s expanded outputare underway, but details are not available. Existing production issold under multi-year contracts with Commonwealth Edison and EngageEnergy US, LP. Elwood’s existing 600 megawatts of capacity wasplaced in service in July 1999. When fully built, Elwood would beIllinois’ largest merchant facility.

Nicor Inc. has signed on as an equal partner in the plannedHorizon Pipeline with Kinder Morgan Inc.’s Natural Gas PipelineCompany of America (NGPL), the companies said. The partners alsosubmitted Horizon’s application to FERC this week.

Pennaco Energy, the largest leaseholder and most active operatorin the Powder River Basin in Wyoming and southeastern Montana,reported that its gross gas production out of the basin has reached46.1 MMcf/d and is expected to increase rapidly now that newpipeline infrastructure is in place. This promising coal-bedmethane play, which took the national spotlight last year, isexpected to be one of the fastest growing areas in the RockyMountain region over the next decade.

Amoco, Burlington Resources and now Southern California Gas have broadened the attack on El Paso Natural Gas’ capacity allocation procedures and have requested that FERC block El Paso’s new $38 million contract with Enron for 1.2 Bcf/d of firm capacity.

Amoco, Burlington Resources and now Southern California Gas have broadened the attack on El Paso Natural Gas’ capacity allocation procedures and have requested that FERC block El Paso’s new $38 million contract with Enron for 1.2 Bcf/d of firm capacity.