Boston, MA 10/15/2014 (wallstreetpr) – According to reports, AGL Resources Inc. (NYSE:GAS) and Tallgrass Energy Partners LP (NYSE:TEP) have decided to come together for pursuing new pipeline project. As per the information, TEP wants to initiate the development work of Prairie State Pipeline, which is a new natural gas pipeline. It is looking forward to taking the support from GAS in order to execute things efficiently and within least possible time.
Insights of the project:
Both AGL Resources Inc. (NYSE:GAS) and Tallgrass Energy Partners LP (NYSE:TEP) are looking forward to taking each other’s support not only this developmental work, but also in many other activities. Apart from this new pipeline project, both of these companies have also launched non-binding open season to improve natural gas market participants. They have decided to take this initiative for moving the natural gas supply from central Illinois to the Chicago Market Center and various other projects in between these two locations. As per the information, this project is accepting non-binding bids for implementing long-term firm transportation facility on the Project.
Total capacity of Prairie State Pipeline is expected to be somewhere between 1.2 Bcf/d and 1.5 Bcf/d. It has already gotten expression of interest for total commitment of 400 MMcf/d. With the help of the Prairie State Pipeline, AGL Resources Inc. (NYSE:GAS) and Tallgrass Energy Partners LP (NYSE:TEP) will be able to offer additional supply diversity and enhanced capacity. Apart from this, both the companies will also be able to enhance reliability through new infrastructure development. Prairie State Pipeline will consist of approximately 40 miles of large diameter pipeline upon completion. It will run in a north-south orientation and connect various interstate pipelines in Douglas County to natural gas storage fields and gas distribution systems. It will also connect several interstate pipeline companies in the Chicago Market Center and interstate pipelines in Douglas County for overall development of that area in the near future.