Tallgrass and AGL Resources to develop new natural gas pipeline

Tallgrass Development, LP intends to pursue the development of a new natural gas pipeline, the Prairie State Pipeline, with ownership participation by Tallgrass and AGL Resources Inc. Tallgrass and AGL also announced a non-binding open season for natural gas market participants to move gas from supply connections in central Illinois to the Chicago Market Centre and points in between. The project is accepting non-binding bids for long-term firm transportation capacity on the project.

Prairie State Pipeline is expected to have a total capacity between 1.2 billion ft³/d and 1.5 billion ft³/d and has already received an expression of interest for a commitment of 400 million ft³/d. Prairie State Pipeline will provide additional supply diversity and access to the Illinois and Midwest markets, while increasing reliability through new infrastructure construction.

When complete, Prairie State Pipeline is expected to consist of nearly 140 miles of large diameter pipeline running in a generally north-south orientation, to connect interstate pipelines in Douglas County, Illinois, to gas distribution systems, natural gas storage fields and interstate pipeline companies in the Chicago Market Centre. Prairie State Pipeline expects to provide unique access to more than 4.0 billion ft³/d of delivery points. Potential delivery points include city-gate and storage interconnects with Nicor Gas, The Peoples Gas Light and Coke Co., Ameren, North Shore Gas Company and possible interstate pipeline interconnects with ANR Pipeline, Guardian Pipeline, Northern Border Pipeline, Horizon Pipeline, Alliance Pipeline and Natural Gas Pipeline Company of America.

Tallgrass will use the information received in this open season to determine the appropriate design capacity of Prairie State Pipeline and the respective receipt and delivery point interconnects. Tallgrass has begun discussions with prospective shippers concerning the terms of binding precedent agreements that, if executed, would result in those shippers becoming committed shippers on the project. FERC approval of the project will be sought once the appropriate design capacity of the Prairie State Pipeline is determined. As currently contemplated, Prairie State Pipeline anticipates an in-service date of 1 November 2017. This date is subject to change based on the outcome of this and any subsequent open season(s) and may include a phased-in in-service.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/business-news/15102014/tallgrass-and-agl-resources-to-develop-new-natural-gas-pipeline-913/