FERC approves Horizon gas pipeline project in northern Illinois

By the OGJ Online Staff

HOUSTON, July 18 -- Natural Gas Pipeline Co. of America and Nicor Inc. said the Federal Energy Regulatory Commission has approved their $79-million Horizon natural gas pipeline project in northern Illinois.

Horizon Pipeline Co. will combine newly constructed and existing pipeline facilities. It will build 27 miles of 36-in. line and lease 46 miles of existing pipeline from NGPL, a subsidiary of Kinder Morgan Inc. (OGJ Online, Sept. 27, 2000).

The new facilities and leased capacity will allow Horizon to transport 380 MMcfd from near Joliet into McHenry County, connecting the emerging supply hub at Joliet with the northern part of the Nicor gas distribution system and an existing NGPL pipeline.

Richard Kinder, chairman and CEO of Kinder Morgan, said, "The project serves as a response to the great need for additional natural gas in the growing northern Illinois market, including supplies for proposed new electric power generation projects."

Thomas Fisher, chairman, president and CEO of Nicor, said, "By utilizing existing pipe and right-of-way, we will reduce the environmental impact and landowner concerns about construction."

Horizon Pipeline plans to begin construction in the fall, completing it next spring. Nicor has committed to transport 300 MMcfd on the line.

Kinder Morgan operates more than 30,000 miles of natural gas and product pipelines. It also has significant retail distribution, electric generation and terminal assets. Through its general partner interest, it operates Kinder Morgan Energy Partners LP. Combined, the two companies have an enterprise value of approximately $17 billion.

Nicor Gas serves nearly 2 million customers in most of the northern third of Illinois, excluding Chicago.