deb mcdonald reveals a little bit of ngpl ' s strategy in interview ngpl recontracts with nipsco
natural gas pipeline company of america ( ngpl ) continues to move through the
recontracting
process like a hot knife through butter . since kinder morgan took over ngpl
parent kn energy
last year , the interstate pipeline subsidiary has signed multiple agreements
and contract
extensions for gas transportation and storage with its major shippers in the
midwest , including
another deal announced yesterday with northern indiana public service
( nipsco ) .
ngpl and nipsco signed a contract extending the terms of several firm
transportation
agreements totaling 295 , 100 mmbtu / d of capacity beginning dec . 1 , 2000 and
dec . 1 , 2001
and continuing through nov . 30 , 2002 . they also extended the terms of two
storage agreements
totaling 10 . 5 bcf of capacity beginning dec . 1 , 2000 and april 1 , 2001 and
continuing through
march 31 , 2003 . nipsco , a nisource subsidiary , is a regulated utility that
provides natural gas
o nearly 700 , 000 customers and electricity to 416 , 000 customers across the
northern third of indiana .
" virtually all of our operationally available capacity is sold out now until
the fourth quarter of this
year , " said ngpl president deborah mcdonald in an interview .
" basically about a third of the transportation contracts and a third of the
storage contracts are
up for renewal every year . we ' ve been very successful in our efforts
resigning our three major
customers [ nigas , nipsco and peoples ] . " despite increasing competitive
pressure from
northern border and alliance pipeline , the pipeline also has had surprising
luck signing
agreements with marketers and power generators .
" in contrast to the traditional market of long - haul transportation from the
midcontinent and
louisiana to chicago , we have been extending our horizons trying to find a
new market in
the marketers rather than the core ldcs . obviously the contract that we
signed earlier this
year with aquila energy for 500 , 000 mmbtu of transportation capacity has also
really helped
us be successful in our recontracting efforts , " mcdonald said .
" we also have developed a number of new rate services for gas - fired power
generators .
growth in ngpl will come from natural gas - fired generation . you probably saw
our press
release about the ameren contracts for [ construction of 1 , 700 mw of
generation along the
ngpl system ] . in the aggregate we think we are on target to connect over
3 , 000 mw of
gas - fired generation this year and over 3 , 000 mw next year as well [ which
would represent
up to 900 mmcf / d in gas transportation capacity ] .
" obviously another challenge is going to be [ the 1 . 325 bcf / d ] alliance
pipeline coming into
the market this fall . it ' s anyone ' s guess whether that will really fill up in
a short period of time .
i think a lot of that will be coming into chicago and moving back out on
vector . but we ' re
ready at hub america to kind of serve as a giant header system [ with texas
eastern as
an eastbound partner ] . "
mcdonald was not prepared , however , to announce the results of a recent open
season
for about 100 mmcf / d of capacity that will be available through a new
interconnection between
ngpl and tetco for eastbound transportation .
deb mcdonald reveals a little bit of ngpl ' s strategy in interview
ngpl recontracts with nipsco
natural gas pipeline company of america ( ngpl ) continues to move through the
recontracting
process like a hot knife through butter . since kinder morgan took over ngpl
parent kn energy
last year , the interstate pipeline subsidiary has signed multiple agreements
and contract
extensions for gas transportation and storage with its major shippers in the
midwest , including
another deal announced yesterday with northern indiana public service
( nipsco ) .
ngpl and nipsco signed a contract extending the terms of several firm
transportation
agreements totaling 295 , 100 mmbtu / d of capacity beginning dec . 1 , 2000 and
dec . 1 , 2001
and continuing through nov . 30 , 2002 . they also extended the terms of two
storage agreements
totaling 10 . 5 bcf of capacity beginning dec . 1 , 2000 and april 1 , 2001 and
continuing through
march 31 , 2003 . nipsco , a nisource subsidiary , is a regulated utility that
provides natural gas
o nearly 700 , 000 customers and electricity to 416 , 000 customers across the
northern third of indiana .
" virtually all of our operationally available capacity is sold out now until
the fourth quarter of this
year , " said ngpl president deborah mcdonald in an interview .
" basically about a third of the transportation contracts and a third of the
storage contracts are
up for renewal every year . we ' ve been very successful in our efforts
resigning our three major
customers [ nigas , nipsco and peoples ] . " despite increasing competitive
pressure from
northern border and alliance pipeline , the pipeline also has had surprising
luck signing
agreements with marketers and power generators .
" in contrast to the traditional market of long - haul transportation from the
midcontinent and
louisiana to chicago , we have been extending our horizons trying to find a
new market in
the marketers rather than the core ldcs . obviously the contract that we
signed earlier this
year with aquila energy for 500 , 000 mmbtu of transportation capacity has also
really helped
us be successful in our recontracting efforts , " mcdonald said .
" we also have developed a number of new rate services for gas - fired power
generators .
growth in ngpl will come from natural gas - fired generation . you probably saw
our press
release about the ameren contracts for [ construction of 1 , 700 mw of
generation along the
ngpl system ] . in the aggregate we think we are on target to connect over
3 , 000 mw of
gas - fired generation this year and over 3 , 000 mw next year as well [ which
would represent
up to 900 mmcf / d in gas transportation capacity ] .
" obviously another challenge is going to be [ the 1 . 325 bcf / d ] alliance
pipeline coming into
the market this fall . it ' s anyone ' s guess whether that will really fill up in
a short period of time .
i think a lot of that will be coming into chicago and moving back out on
vector . but we ' re
ready at hub america to kind of serve as a giant header system [ with texas
eastern as
an eastbound partner ] . "
mcdonald was not prepared , however , to announce the results of a recent open
season
for about 100 mmcf / d of capacity that will be available through a new
interconnection between
ngpl and tetco for eastbound transportation .