Tallgrass/AGL Resources To Develop Prairie State Pipeline

April 2015, Vol. 242, No. 4

Tallgrass Development, LP and AGL Resources Inc. concluded the non-binding open season for the proposed Prairie State Pipeline. The system would move natural gas from supply connections in central Illinois to the Chicago Market Center and points in between. Prairie State Pipeline 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.

Prairie State Pipeline is expected to have a total capacity of 1.2-1.5 Bcf/d. The project has received solid expressions of interest and AGL Resources and Tallgrass are finalizing 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.

The pipeline is expected to consist of 140 miles of large-diameter pipe running in a generally north-south orientation, to connect interstate pipelines in Douglas County, IL to gas distribution systems, storage fields and interstate pipeline companies in the Chicago Market Center. Prairie State Pipeline expects to provide access to over 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 Company and possible interstate pipeline interconnects with ANR Pipeline, Guardian Pipeline, Northern Border Pipeline, Horizon Pipeline, Alliance Pipeline and Natural Gas Pipeline Company of America.

Prairie State Pipeline anticipates an in-service date of Nov. 1, 2017 although that is subject to change based on the outcome of this and any subsequent open season and may include a phased-in in-service.