Primary Energy Inc. and Duke/Fluor Daniel (D/FD) today announced that
they have signed an agreement to develop, engineer and construct a blast
furnace gas-fired cogeneration facility at LTV's East Chicago plant.
The plant, to be built at LTV's Indiana Harbor Works, will generate 50
megawatts of energy primarily from byproduct fuels but also will use
some natural gas. The project cost is estimated at $60 million and is
scheduled to begin construction in the spring of 2000 with completion in
fall 2001.
"This is yet another example of Primary Energy and D/FD's collective
commitment to find solutions to customers' needs in the domestic energy
market," said Clarence Ray, president of Duke/Fluor Daniel.
This project will enable Primary Energy, a subsidiary of NiSource Inc.
(NYSE: NI), to generate electricity by using existing byproduct fuels.
The new cogeneration facility is designed to reduce operating costs and
provide a reliable, low-cost source of electric power for LTV, which
will be responsible for the operation and maintenance of Primary
Energy's facility.
"Primary Energy has set a standard of service based on our customers'
expectations that we will help them control energy costs," said Gary
Neale, NiSource, Inc. chairman, president and chief executive officer.
"This project allows for the expansion of clean power technologies
without construction of significant new infrastructure. In addition, the
existing electric capacity that will be freed up from the system will be
utilized by Northern Indiana Public Service Company's growing customer
base throughout northern Indiana," he added.
This partnership between Primary Energy and D/FD has resulted in has
resulted in four projects to date and more than 850 megawatts of
generating capacity. Additional facilities previously developed by
Primary Energy and with EPC services provided by D/FD include:
-- A cogeneration project to be constructed at BP Amoco's Whiting
Refinery in Whiting, Ind., which uses natural gas and refinery byproduct
fuels to generate electricity.
-- Lakeside Energy Inc., which uses byproduct fuels from U.S. Steel
Group's operations at Gary Works in Gary, Ind., to produce electricity
and process steam for GaryWorks' exclusive use.
-- North Lake Energy Inc., a steam turbine cogeneration plant at Ispat
Inland Inc.'s Indiana Harbor Works in East Chicago, Ind.
-- Cokenergy, which began operating in summer 1998 at Ispat Inland's
Indiana Harbor Works, captures waste heat to generate electricity and
processes steam for Ispat Inland's exclusive use. Cokenergy also removes
sulfur and particulate matter from the adjacent non-recovery coke plant.
-- Cokenergy also removes sulfur and particulate matter from the
adjacent non recovery coke plant.
LTV is a leading producer of value-added flat-rolled steel for demanding
applications in the automotive, appliance and electrical equipment
industries. LTV is also the leading producer of welded tube products,
bimetallic wire, and a major manufacturer of pre-engineered metal
buildings.
Primary Energy, Inc., a wholly owned subsidiary of NiSource Inc.,
invests in and manages projects that optimize energy productivity, while
reducing operating costs for large, energy-intensive industrial and
commercial complexes. Primary Energy specializes in on-site electric and
steam-generating facilities and acts with strong customer focus to
assure its customers' objectives are being met. Primary Energy currently
has 393 MW of generation and has contracts for an additional 575 MWs.
Target markets include the steel, refining, chemical, food products and
pulp and paper industries in North America. Information about Primary
Energy is available via the Internet at www.primaryenergy.com.
NiSource Inc. is a holding company whose primary business is the
distribution of electricity, natural gas and water in the Midwest and
Northeast United States. The company also markets utility services and
customer-focused resource solutions along a corridor stretching from
Texas to Maine. Additional information may be accessed on the Internet
at www.nisource.com.
Duke/Fluor Daniel, formed in 1989 by Duke Energy Corporation (NYSE: DUK)
and Fluor Daniel, Inc., provides comprehensive engineering, procurement,
construction and operating plant services for fossil-fueled electric
power generation facilities worldwide.
Duke Energy Corporation is a global energy company with more than $29
billion in assets. Headquartered in Charlotte, the company reaches into
more than 50 countries producing energy, transporting energy, marketing
energy and providing energy services. In the United States, Duke Energy
companies provide electric service to approximately two million
customers in North Carolina and South Carolina; operate interstate
pipelines that deliver natural gas to various regions of the country;
and are leading marketers of electricity, natural gas and natural gas
liquids. Additional information about the company is available on the
internet at: www.duke-energy.com.
Fluor Daniel Inc. is the engineering, procurement and construction
subsidiary of Fluor Corporation (NYSE: FLR). In 1999 Fluor Corp.
revenues were $12.4 billion. Additional information on Fluor Corp. is
available on the Internet at: www.fluor.com.
Dean H. Hall of Primary Energy Inc., 219-647-6071; or Maria Hibbs, Media Relations of NiSource Inc., 219-647-6201; or Liz Johnson, Public Affairs of Duke Energy Corporation, 713-627-5011; or Keith Karpe, Media Relations of Fluor Corporation, 949-349-7661