Williams, Kinder Morgan sign 3,300 MW tolling agreement


By the OGJ Online Staff

HOUSTON, Feb. 20, 2001—In a second big generation program reported Tuesday, a unit of Tulsa-based Williams said it signed a 16-year tolling agreement to supply fuel to and market 3,300 MW of capacity for six intermediate-peaking power plants to be developed by a subsidiary of Kinder Morgan Inc., Houston.

Financial terms of the agreement were not disclosed. Earlier, Southern Co. reported plans to expand generating capacity by 6,600 MW by 2004 in the Southeast, including 4,600 MW to serve the competitive wholesale markets.

Each of the six Kinder Morgan combined cycle natural gas-fired facilities will produce 550 MW of capacity and will be located in the Midcontinent and Southeast regions. The first of the planned six facilities is currently under construction in Jackson, Mich., and is expected to be online during the second quarter of 2002.

Construction of two additional facilities is planned for completion by the second quarter of 2003 and the final three by the second quarter of 2004.

The tolling transaction represents one of the largest marketing agreements for new plant construction executed in the U.S. to date, said Steve Malcolm, CEO of Williams Energy Services. He said the 3,300 MW capacity addition is consistent with Williams's plan to expand its national portfolio to 40,000 MW by 2005.

The six plants will use a combined cycle design that includes both aero-derivative and industrial gas turbines with fast response during peak demand, the companies said.

"This agreement will enable us to rapidly accelerate our power development program, while retaining our strategy of focusing on fee-based or tolling projects," said Richard D. Kinder, Kinder Morgan CEO. He said fee-based earnings from these new plants are expected to drive significant growth in the company's power segment in 2002 and beyond.

Sponsored by FLSmidth

Related Articles

 Plant Vogtle nuclear reactors expected to cost $7.5bn

Plant Vogtle nuclear reactors expected to cost $7.5bn

Georgia Power, a subsidiary of Southern Co. (NYSE: SO), filed documents with the state of Georgia that said overruns at the Plant Vogtle expansion project are now pushing the price tag to more than $7.5 billion.

 MS Power coal-to-gas conversion nearly complete

MS Power coal-to-gas conversion nearly complete

A coal-to-gas conversion project at a power plant operated by Mississippi Power is nearly complete.

Follow Power Engineering on Twitter
Latest News

S. Africa court dismisses Westinghouse nuclear generator replacement dispute

A South African court dismissed a filing from Westinghouse Electric Co. asking to reopen bidd...

IAEA urges India to tighten nuclear safety regulations

The International Atomic Energy Agency (IAEA) is pressing India to tighten its nuclear safety...

Caterpillar's C280 Genset enters China offshore market

Caterpillar Oil & Gas will supply six of its Cat C280-16 offshore generator sets (gensets...

Justices divided over EPA mercury limits

The Supreme Court's conservative justices cast doubt on the Obama administration's first-ever...

Report: Global wind power installations increased by 42% in 2014

Global wind power installations grew 42 percent year-over-year, according to a new report con...

Low carbon standard passes Ill. Senate committee

An Illinois Senate committee passed a bill that would establish a low carbon standard that wo...

Russia to build two nuclear power reactors in Jordan for $10bn

Russia signed a $10 billion deal to build Jordan’s first nuclear power plant.

Iowa top officials on opposites sides in EPA lawsuit

Iowa's governor and attorney general were on opposite sides of a case argued Wednesday at the...

Power Engineering Current Issue

02/01/2015
Volume 119, Issue 2
1502PE-cover
Products Showcase
Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015

Power Industry Wire News

Earthstone Energy, Inc. Reports Fourth Quarter and Full Year 2014 Results

Earthstone Energy, Inc. Reports Fourth Quarter and Full Year 2014 Results

Chicago's Lakeshore Recycling Systems Helps Change a Life on March 27 Airing of the Steve Harvey Show

Chicago's Lakeshore Recycling Systems Helps Change a Life on March 27 Airing of the Ste...

East West Petroleum Corp.'s CEO David Sidoo Interviewed by The Energy Report

East West Petroleum Corp.'s CEO David Sidoo Interviewed by The Energy Report

Perma-Fix Schedules Fourth Quarter 2014 Earnings Conference Call

Perma-Fix Schedules Fourth Quarter 2014 Earnings Conference Call

Murray Energy's Controlling Interest of Foresight Creates U.S. Coal Mining Giant, an Industrial Info News Alert

Murray Energy's Controlling Interest of Foresight Creates U.S. Coal Mining Giant, an In...

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>