Natural signs enough deals to expand Gulf Coast, Louisiana lines

Natural signs enough deals to expand Gulf Coast, Louisiana lines

Washington (Platts)--2Jun2006

Natural Gas Pipeline Co. of America has entered into enough long-term,
firm gas transportation contracts to proceed with a proposed $69 million
expansion that would hike capacity by 200,000 Dt/d on its Gulf Coast and
Louisiana mainlines for delivery to the Henry Hub interconnect, it said.

In a statement released Friday, Natural's Kinder Morgan parent said the
expansion would involve adding 31,000 horsepower of compression and the
installation of three miles of 36-inch-diameter piping.

The work also would include reconfiguring Natural's compressor station
304 on the Gulf Coast mainline in Harrison County, Texas, to allow southward
flow into the Louisiana Line, it said.

"The expansion will provide valuable takeaway capacity for some of the
most prolific and fastest growing producing areas in the country, including
the Fayetteville Shale and Barnett Shale plays," said Scott Parker, president
of KMI's Natural Gas Pipelines group.

"By providing greater access to the Henry Hub and other interstate
pipeline systems, the project will also enhance the ability of shippers to
reach important consuming markets along the East Coast," he added.

Natural's Gulf Coast mainline extends to the Chicago area from south
Texas and is one of the main arteries on Natural's system, allowing access to
many of the major gas-production areas in North America.

Natural's Louisiana Line, which originates at the Gulf Coast mainline in
Montgomery County, Texas, extends eastward, connecting to other major
interstate systems and ending at the Henry Hub. Capacity on the Louisiana Line
is currently sold out, Natural said.

Subject to regulatory approvals, the project is slated to begin service
in January 2008.

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