Dynegy takes over Northern Natural Gas

Pipeline & Gas Journal, Feb, 2002

Enron and Dynegy have agreed that Dynegy will exercise its option and assume control of Enron's Northern Natural Gas (NNG) pipeline. Dynegy will extend Enron's right to repurchase the pipeline until June 30 and pay Enron about $23 million pursuant to the original terms of the option agreement. Enron said it will continue to perform services for Dynegy that are critical to the safe and reliable operation of Northern Natural Gas pursuant to an operating agreement to be executed between the two parties.

NNG's 16,600 miles of pipeline extend from the Permian Basin in Texas to the Upper Midwest. NNG's storage capacity is 59 Bcf and its market area capacity is about 4.3 Bcf/d.