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 Unit 2 back in operations after scheduled outage

Southern Nuclear, a unit of Southern Co. (NYSE: SO), brought Unit 2 at Plant Vogtle back online after a scheduled refueling and maintenance outage.

Plant Farley Unit 2 taken offline for planned refueling, maintenance outage

Plant operators at Southern Co. (NYSE: SO)'s Joseph M. Farley Nuclear Plant safely took Unit 2 offline on Oct. 14 after a lightning strike on an electrical transmission line, near the plant, caused loss of a support system.

Follow Power Engineering on Twitter

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.

Latest News

Shutterstock coal production trucks

Weekly Coal Production

The Weekly Coal Production shows how much coal is being produced across the U.S.

Federal Reserve Bank of Dallas Weekly Economic Indicators financial business

The Federal Reserve Bank of Dallas' Economic Indicators

The Federal Reserve Bank of Dallas offers a glimpse into how the markets are doing domestical...

Kvaerner awarded contract for gas-fired power plant in Delaware

Kvaerner North American Construction Inc. and its joint venture partner, Parsons Brinckerhoff...

Canadian Solar purchases two solar projects

Canadian Solar Inc. has acquired a majority interest in two utility-scale solar power project...

Operators Restart Unit 2 at PPL Susquehanna

Unit 2 at the PPL Susquehanna nuclear power plant near Berwick, Pa. resumed generating electr...

Settlement agreement limits cost recovery at Edwardsport

The Indiana Utility Regulatory Commission (IURC) on Dec. 27 modified and approved a settlemen...

Toshiba in talks to sell portion of Westinghouse nuclear unit

Toshiba Corp is in talks  to sell up to 16% of its stake in the Westinghouse Electric Co...

Utah nixes nuclear waste storage facility

Plans to park radioactive waste at a storage facility in Utah have been officially called off.

Archived Articles

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

Power Engineering Current Issue

03/01/2014
Volume 118, Issue 3
1403PE-cover

Power Industry Wire News

Scorpio Tankers Inc. Announces Third Quarter Earnings Release Date and Conference Call Details for October 27, 2014 and Delivery of STI Yorkville

Scorpio Tankers Inc. Announces Third Quarter Earnings Release Date and Conference Call ...

Western Gas Announces Third Quarter 2014 Distribution and Schedules Earnings Conference Call

Western Gas Announces Third Quarter 2014 Distribution and Schedules Earnings Conference...

Choose Energy Adds Former Expedia CEO to Board of Directors

Choose Energy Adds Former Expedia CEO to Board of Directors

UGE International Announces AGM Results and Grant of RSUs

UGE International Announces AGM Results and Grant of RSUs

New Standby Generator Line From Cummins Power Generation Provides Peace of Mind for Small Businesses at All Times

New Standby Generator Line From Cummins Power Generation Provides Peace of Mind for Sma...

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 >>


Power Engineering Newscasts

EPA chief: carbon caps will boost economy
Australia, Russia enter nuclear power agreement with Argentina
Largest battery energy storage in North America now operational
EPA chief: carbon caps will boost economy Largest battery energy storage in North America now operational Australia, Russia enter nuclear power agreement with Argentina Texas’ Panda Temple combined cycle plant up and running
Siemens agrees to acquire Dresser-Rand
Safety concrete poured at UAE nuclear reactor power project
Foster Wheeler to upgrade natural gas-fired power plant’s emission controls
GE, TransCanada partner on natural gas turbine design
Energy storage global market to grow to $15.6B by 2024; DOE awards $2M to support taller wind turbine towers; Hinkley Point C nuclear project have financial incentives approved; N.J. company building waste-to-energy project in Ireland