Kinder Morgan, Nicor looking at Rockies to Midwest gasline

Kinder Morgan Energy Partners and Nicor said Aug. 5 they have formed a joint venture for the purpose of determining the level of interest by shippers in a natural gas pipeline from the Cheyenne Hub in Rockport, Colo. to the Midcontinent region.

The binding open season began Aug. 4 and gives shippers until Aug. 29 to bid for firm capacity on the proposed Advantage Southern Pipeline.

The 392-mile pipeline is being proposed in multiple variations, with capacities ranging from 330,000 dekatherms per day to 800,000 Dth per day, Kinder Morgan said in a statement.

The final determination of the pipeline size will depend on shipper commitments for firm transportation capacity from the Cheyenne Hub to the Midwest, the company said.

“Based on the response we have received from our original Advantage open season, it’s clear there continues to be a strong need for additional infrastructure to access Rockies production in order to meet growing demand for natural gas in the Midwest,” Rock Meyer, president of Kinder Morgan’s western region gas pipelines, said in a statement.

“Advantage Southern Pipeline has potential to become a strong outlet for tapping the Rockies’ growing supply,” said Daniel Dodge, Nicor’s senior vice president of diversified ventures and corporate planning. “With the decline in production from other U.S. supply basins, the Advantage Pipeline offers a new alternative source of natural gas for Nicor and other local distributions companies.”

If built, the Advantage Southern Pipeline would feature receipt interconnects from Wyoming and Colorado. Proposed delivery interconnects would be in several locations in Kansas.

Kinder Morgan and Nicor have signed a letter of intent to jointly develop the project, subject to interest generated from the open season and regulatory approvals.