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.
Frequently Asked Questions
The contract is for a term of three years and covers the provision of natural gas supply and natural gas management services for three specific FirstEnergy natural gas-fired generating plants.
ONEOK will act as the exclusive natural gas commodity and services provider, manage FirstEnergy's natural gas transportation and storage capacity, and optimize the delivered cost of gas to FirstEnergy.
Yes, ONEOK will have the opportunity to utilize FirstEnergy's unused transportation and storage capacity to serve its own third-party clients, potentially creating new business opportunities and improving asset utilization.
The contract covers FirstEnergy Generation Corp.'s Richland and West Lorain plants in Ohio, and its Sumpter, Michigan plant.