Summary
ONEOK, Inc. announced on May 1, 2006, that it has been selected by subsidiaries of FirstEnergy Corp. to provide natural gas supply and management services. This significant three-year contract positions ONEOK as the exclusive provider for three of FirstEnergy's natural gas-fired generating plants located in Ohio and Michigan. The agreement entails ONEOK managing FirstEnergy's natural gas transportation and storage capacity, with a focus on optimizing delivered gas costs. Furthermore, ONEOK gains the opportunity to utilize FirstEnergy's excess transportation and storage capacity for its own third-party business, potentially enhancing operational efficiency and revenue streams.
Key Highlights
- 1ONEOK secured a three-year contract with FirstEnergy Corp. subsidiaries.
- 2The contract involves providing natural gas supply and management services.
- 3ONEOK will be the exclusive natural gas commodity and services provider for three FirstEnergy generating plants.
- 4The covered plants are located in Richland and West Lorain, Ohio, and Sumpter, Michigan.
- 5ONEOK will manage FirstEnergy's natural gas transportation and storage capacity.
- 6The company will be responsible for optimizing the delivered cost of natural gas for FirstEnergy.
- 7ONEOK can leverage FirstEnergy's unused transportation and storage capacity for third-party needs.