Tallgrass, AGL Resources Advancing Prairie State Pipeline

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A proposed 140-mile pipeline to increase natural gas supply the Chicago area received a strong vote of confidence.

tallgrass_logo_lightTallgrass Development LP and AGL Resources Inc. announced Feb. 12 that the companies have successfully concluded the non-binding open season for the Prairie State Pipeline. The pipeline is designed to move natural gas from supply connections in central Illinois to the Chicago Market Center and points in between. The project is being jointly developed by Tallgrass and AGL Resources, and is expected to have ownership participation by both companies should binding commitments be finalized with interested market participants.

“The value proposition provided by Prairie State was well received by the broader market, including expressions of interest from both the market and the production communities,” said Bill Moler, Chief Operating Officer for Tallgrass Development. “The open season results affirmed Tallgrass and AGL Resources’ view that the end-user market needs incremental, reliable infrastructure and would support additional supply diversity.”

AGL_Resources_LogoPrairie State Pipeline is expected to have a total capacity of 1.2 billion cubic feet per day (Bcf/d) to 1.5 Bcf/d. The project has received solid expressions of interest and AGL Resources and Tallgrass are working to finalize shipper commitments via precedent agreement. Prairie State Pipeline will provide additional supply diversity and access to the Illinois and Midwest markets, while increasing reliability through new infrastructure construction.

“The Prairie State Pipeline is an important project for the Illinois market. At this stage, we are pleased with the open season results and plan to continue to work with interested shippers and Tallgrass to move this project forward,” said John W. Somerhalder II, CEO of AGL Resources.

Prairie State Pipeline is expected to consist of nearly 140 miles of large diameter pipeline running in a generally north-south orientation, to connect interstate pipelines in Douglas County, Illinois, to gas distribution systems, natural gas storage fields and interstate pipeline companies in the Chicago Market Center. Prairie State Pipeline expects to provide unique access to more than 4 Bcf/d of delivery points. Potential delivery points include city-gate and storage interconnects with Nicor Gas, The Peoples Gas Light and Coke Co., Ameren, North Shore Gas Co. and possible interstate pipeline interconnects with ANR Pipeline, Guardian Pipeline, Northern Border Pipeline, Horizon Pipeline, Alliance Pipeline and Natural Gas Pipeline Co. of America. FERC approval of the Project will be sought once the appropriate design capacity of the Prairie State Pipeline is determined.

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