FLORIDA GAS TRANSMISSION AND KOCH GATEWAY PIPELINE COMPANY
ANNOUNCE MOBILE BAY LATERAL DEAL
FOR IMMEDIATE RELEASE: Monday, November 1, 1999
HOUSTON – Florida Gas Transmission Company (FGT) announced today it is acquiring an undivided interest in the Koch Gateway Pipeline Company (KGPC) Mobile Bay lateral.
Subject to Federal Energy Regulatory Commission (FERC) approval, FGT will own 300 MMcf/day of capacity and KGPC will continue to operate the lateral. The sale is expected to close in the spring of 2002 to coincide with the in-service date of FGT’s proposed Phase V expansion. KGPC is measuring shippers’ interest in a potential expansion of KGPC’s capacity in the Mobile Bay lateral.
FGT’s Phase V expansion, designed primarily to meet the growing electric demand in Florida, is expected to add 375-425 MMcf/day of new capacity to the FGT natural gas pipeline network at an estimated cost of $400 million. FGT plans to file the project application on Dec. 1, 1999 with the FERC.
As part of the Phase V expansion, FGT plans to construct approximately 28 miles of new pipeline and add compression and other facilities necessary to connect the Mobile Bay lateral to FGT’s mainline near Citronelle in Mobile County, Ala.
“This lateral will provide direct access to additional natural gas supplies in the Mobile Bay area, resulting in increased reliability and flexibility for our customers on the FGT system,” said Rockford G. Meyer, president of FGT.
“With this transaction, Koch Gateway continues to provide the growing North American market access to diverse Gulf Coast supplies,” said John Gibson, president of KGPC.
Koch Gateway Pipeline Company operates the largest gas pipeline system in the Gulf South with more than 10,000 miles of interstate pipelines and more than 120 interconnects. KGPC facilities are strategically located throughout the Gulf States to provide gathering, transportation, and storage services to cities, utilities, major industrials, and other customers.
KGPC is a subsidiary of Wichita, Kansas-based Koch Industries, Inc. Koch Industries and its subsidiaries employ 16,000 people worldwide and are involved in virtually all phases of the oil and gas industry as well as in chemicals, plastics, energy services, chemical and environmental technology products, asphalt products, metals and mineral services, agriculture, financial services, and ventures. For more information on Koch, refer to Koch's home page at www.kochind.com on the internet.
Florida Gas Transmission, a wholly owned subsidiary of Citrus Corp., operates an approximately 4,800-mile interstate natural gas transmission system from South Texas to South Florida. Citrus Corp. is owned jointly by a subsidiary of Enron Corp. of Houston and El Paso Energy Corporation of Houston. Detailed information is available on the Internet at www.fgt.enron.com.
Click here to download this press release in Microsoft Word format.
For additional information please contact:
Gina Taylor
Florida Gas Transmission
gtaylor@enron.com
713.853.7681
Carter Vande Beek
Koch Industries, Inc
vandebec@kochind.com
713.544.5353
Mary Beth Jarvis
Koch Industries, Inc
jarvism@kochind.com
316.828.3756
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