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Reuters Skygen, Coral plan to build 250-MW ALA gas plant

Date: 07-Oct-99
Country: USA

SkyGen will be responsible for overall project development, management
and operations. A Coral affiliate has joined SkyGen as an equity owner
of the project, and other Coral affiliates will supply fuel to the
facility and market the electricity, the companies said in a statement.

The new facility will be constructed adjacent to International Paper
Co.'s mill near Mobile. Commercial operation is planned for the second
quarter of 2001.

This follows a similar announcement from SkyGen and Coral Coral in July
that they would work together on the 228-MW Pine Bluff Energy Centre in
Arkansas. Commercial operation for this natural gas-fired plant is also
planned for the second quarter of 2001.

The electric output of the project will be sold by Coral on a merchant
basis in the Southeastern Electric Reliability Council (SERC) and
Florida power markets, and possibly into the Southwest Power Pool (SPP)
market.

Steam produced by the facility will be supplied to International Paper
for use in its papermaking process.

Coral is an affiliate of Shell Oil Co.

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