Panhandle Eastern Plans new Natural Gas Pipeline to Serve the Great Lakes Region

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Panhandle Eastern Pipe Line Company (Houston, Texas) is planning to construct a new natural gas pipeline from Grant County, Indiana, to the Cincinnati, Ohio, area, with a through put capacity of 500 mmscfd of natural gas. The Muncie Lateral Project calls for the construction of 124 miles of 30"-diameter transmission pipeline. Capital estimates range from $250 to $500 million to complete the pipeline project. The Muncie Lateral is designed to improve transportation services by enhancing access to existing Midwest markets and offer new East Coast markets natural gas supplies, as well as LNG supplies, from the Mid-continent, Rocky Mountains, and the Gulf Coast.

Panhandle Eastern hopes to complete demand studies and make a full filing with the FERC in the second quarter of 2005. Construction on the Muncie Lateral will most likely take place in 2007, with completion targeted for later that year or early 2008.

Panhandle Eastern Pipe Line Company, as well as Trunkline Gas Company, Trunkline LNG Company, and Sea Robin Pipeline Company, are business units of Panhandle Energy (Houston, Texas), a subsidiary of Southern Union Company (NYSE: SUG)(Wilkes-Barre, Pennsylvania). Panhandle Energy owns and operates more than 10,000 miles of natural gas pipelines, extending from the Gulf of Mexico to the Midwest and Canada. The pipelines have a combined daily peak capacity of 4.5 Bcf of natural gas and 90 Bcf of underground storage.