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July 17, 2001
HOUSTON – July 17, 2001 – Natural Gas Pipeline Company of America (NGPL), a subsidiary of Kinder Morgan Inc. (NYSE: KMI), and Nicor Inc. (NYSE: GAS), today announced that the Federal Energy Regulatory Commission (FERC) approved the Horizon natural gas pipeline project in northern Illinois, a $79 million construction project.
The Horizon Pipeline Company, a joint venture of NGPL and Nicor, will combine newly constructed and existing pipeline facilities. Horizon Pipeline will construct 27 miles of 36-inch diameter pipe and lease 46 miles of existing pipeline from NGPL. The new facilities and leased capacity will allow Horizon to transport 380 million cubic feet of natural gas per day 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.
"We're pleased that FERC has granted this approval, as we are certain the Horizon pipeline will benefit customers in northern Illinois," said Richard D. Kinder, chairman and CEO of Kinder Morgan, Inc. "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."
"Horizon Pipeline enables us to competitively accommodate increased demand in our traditional gas distribution business and provides supply alternatives to Nicor Gas' northern service territory," said Thomas L. Fisher, chairman, president and CEO of Nicor. "By utilizing existing pipe and right of way, we will reduce the environmental impact and landowner concerns about construction. The pipeline also gives us the option for future expansion to support continued growth in northern Illinois."
Land acquisition by Horizon Pipeline is currently underway in northern Illinois - and construction on the pipeline is expected to begin in the fall of 2001, with completion projected in 2002. Nicor Gas has committed to transport 300,000 MDth per day on the pipeline.
Kinder Morgan, Inc. is one of the largest midstream energy companies in America, operating more than 30,000 miles of natural gas and product pipelines. It also has significant retail distribution, electric generation and terminal assets. Kinder Morgan, Inc., through its general partner interest, operates Kinder Morgan Energy Partners, L. P. (NYSE: KMP), America's largest pipeline master limited partnership. Combined, the two companies have an enterprise value of approximately $17 billion. For more information, visit www.kindermorgan.com.
Nicor (NYSE: GAS) is a holding company. Its principal businesses are Nicor Gas, one of the nation's largest gas distribution companies, and Tropical Shipping, a containerized shipping business that operates between Florida and the Caribbean. Nicor also owns several energy-related subsidiaries and is a partner in Nicor Energy, a provider of unregulated energy products and services. For more information, visit the Nicor Web site at www.nicor.com.
This news release includes forward-looking statements within the meaning of Section 27A of Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Kinder Morgan, Inc. believes that its expectations are based on reasonable assumptions; it can give no assurance that such assumptions will materialize. |
