Transportation news briefs, July 11

Calpine � Kinder Morgan Texas Pipeline � Quest Resource � Williams Gas Pipelines Central � Tennessee Gas Pipeline � Horizon Offshore ... Equilon Enterprises ... Koch Industries

Calpine Corp. and Kinder Morgan Texas Pipeline (KMTP), Houston, a subsidiary of Kinder Morgan Inc., have entered into a contract under which KMTP will supply 60,000 MMbtu/day of natural gas to the Calpine II cogeneration facility at Pasadena, Tex. The contract, which will continue through the summer of 2002, will satisfy about 75% of Calpine's needs. KMTP currently supplies 100% of the natural gas Calpine burns at its Pasadena I plant. KMTP operates intrastate pipeline system primarily along the Texas Gulf Coast and purchases and sells natural gas in the Texas intrastate market.

Quest Resource Corp. (QRCP), Benedict, Kan., said its new gas compressor station on the interstate pipeline owned by Williams Gas Pipelines Central Inc. near Altoona, Kan. came on stream July 1. The facility is owned by Ponderosa Gas Pipeline Co. Inc. (PGPC), a QRCP subsidiary. The facility provides access to the interstate gas market for about 90 miles of the PGPC gas gathering pipeline network that was previously served only by local gas market outlets, the company said.

El Paso Energy Corp. unit Tennessee Gas Pipeline Co. awarded Horizon Offshore Inc. a contract to construct and lay a 17.5-mile, 20-in., 400 MMcfd natural gas pipeline to connect Tennessee's existing system in the Gulf of Mexico to the High Island Offshore System. The pipeline project, dubbed Texas Deepwater Link by Tennessee Gas, was announced in June (OGJ Online, June 14, 2000). Construction should begin during the third quarter.

Equilon Enterprises LLC and Koch Industries Inc. today announced they are completing an agreement that will give Equilon 100% ownership of the Chase pipeline and terminal systems. Equilon is acquiring Koch affiliates' 50% ownership interests in Chase Transportation Co. and Chase Terminal Co. Chase owns about 600 miles of products pipelines with a combined capacity of 60,000 b/d. The pipelines originate in El Dorado, Kan., and extend to Great Bend and Scott City, Kan.; Aurora, Colo.; and the Denver International Airport. Chase also has a 150-mile crude oil pipeline from Scott City to Hudson, Kan. Product storage terminals with a combined capacity of nearly 1.25 million bbl are located in El Dorado, Great Bend, Scott City, and Aurora. Equilon and Koch expect to close the sale by July 31.

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