Indiana Gasification's $2 Billion Plant Gets Scrubbed

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Indiana Gasification LLC (St. Petersburg, Florida), a division of Leucadia National Corporation (NYSE:LUK) (New York, New York), has scrubbed plans to build a $2 billion coal gasification plant that was to be located near Rockport, Indiana.

Last week, the company withdrew its application with the Indiana Utility Regulatory Commission after negotiations to sell the substitute natural gas to two Indiana utility companies fell through. The companies, Northern Indiana Public Service Company (AMEX:NIPSN) (Merrillville, Indiana) and Vectren Corporation (NYSE:VVC) (Evansville, Indiana), failed to reach a 30-year purchase agreement for the 40 billion-cubic-foot substitute natural gas that the Indiana Gasification plant was to produce. Without a purchase agreement in place, the company said it was impossible to proceed with the project.

Plans were to build a 40 billion-cubic-foot substitute natural gas facility that would gasify 3.2 million tons per year of Indiana coal into pipeline-quality natural gas. The utilities would use the fuel as feedstock for their power plants.

Construction was expected to start in October 2009 and take two years to complete. The Indiana Utility Regulatory Commission terminated the application; however, Indiana Gasification will be allowed to resubmit a revised proposal for the plant at a later date.

View Plant Profile - 1071965
View Project Report - 11002993

Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.