... Chicago Market Expansion Project to Move Forward

Chicago Market Expansion Project to Move Forward

A number of stakeholders have signed on to a project that will boost natural gas capacity to the Chicago area.

Natural Gas Pipeline Co. of America LLC (NGPL) has commitments from Antero Resources, Nicor Gas, North Shore Gas and Occidental Energy Marketing Inc. for incremental firm transportation service on its Gulf Coast mainline system from the Rockies Express Pipeline (REX) interconnection in Moultrie County, Illinois, to points north on NGPL’s pipeline system, according to a company statement announced April 14.

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These commitments will support the first phase of NGPL’s Chicago Market Expansion project, which will increase NGPL’s capacity by 238 million cubic feet per day and provide transportation service to markets in proximity to Chicago. The contracts are for an average term of over 11 years.

“This phase of the expansion project meets the current natural gas transportation needs of the Chicago area markets and Northeast producers by providing competitive rates from the expanded REX interconnection to the Chicago area,” said NGPL president David Devine. “We continue to have the ability to provide additional capacity northbound, as well as southbound to Gulf Coast markets, with further cost-effective expansions.”

NGPL intends to file a 7(c) certificate application with the Federal Energy Regulatory Commission in June, with the project expected to be in service in November 2016.

The Chicago Market Expansion will add to NGPL’s already expansive interstate pipeline system, with approximately 9,200 miles of pipeline, more than 1 million hp of compressor facilities and 288 billion cubic feet of working gas storage. Kinder Morgan Inc. operates NGPL and owns a 20 percent interest in the pipeline company. Myria Holdings Inc. owns the remaining interest.

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