Natural gas line to Keystone expected to be a boon to company, community

Posted August 13, 2014 at 1:33 pm

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What has apparently been a goal of the county’s largest employer, now Equity Group of Kentucky-Keystone Foods LCC processing plant, since as far back as the 1990s, will apparently become a complete reality this fall with the construction of a natural gas line to the poultry processing plant, located on Hwy. 90 west of Albany.

A ribbon-cutting ceremony to mark the beginning of construction of the gas line was held last Wednesday, August 6 at the facility with several dignitaries from several agencies and government affiliates on hand to take part.

Officials with Navitas Gas, the local natural gas company, confirmed on Monday that construction on the line–which will be done by Cleary Construction of Lexington–is scheduled to begin by late this week.

Equity Group officials as well as local officials are excited about the prospect of natural gas being afforded the plant and the benefits it will bring not only to the Keystone plant itself, but the community as a whole.

Dr. Robert Williams, Manager of Keystone Foods LLC’s Albany plant, said natural gas to Keystone Foods would support a significant portion of the plant’s energy needs, “saving us several thousand dollars in propane costs,” he said. He estimated the natural gas system could save the facility upwards to between $200,000 and $400,000 per year in costs.

Further, Williams said those savings would lead to securing jobs at the plant and allow the industry to be more competitive.

Dr. Williams said the plant had worked several years with different agencies, state officials and gas companies, the latter he said that could get natural gas to the facility from the best surrounding areas.

After Navitas bought out the previous natural gas company that had operated in the local area, the gas company and Keystone Foods began working out a deal among themselves to bring the line to the facility, working thought the Kentucky PSC (Public Service Commission), which is responsible for approving utility rates, including natural gas, to customers.

The installation of the gas line to Keystone Foods will not have any affect on individual customers and may, in fact, have prevented a possible needed increase in rates.

Williams noted that Navitas will be the owner of the gas line.

Thomas Hartline of Navitas said in a brief interview Monday that contractors had 120 days from August 1 to complete the gas line project, meaning it should be done by late November.

Navitas Gas purchased the company out of bankruptcy in Ohio in 2011 and has been supplying natural gas to the Albany area ever since, and has been working with Keystone Foods to run the line to that location.

Hartline also noted the benefits of the natural gas line to the processing plant. “There has been a raise in natural gas prices (in Albany) for at least 20 years or more,” he said, adding that the additional line to Keystone could generate enough revenue to keep the company from having to seek–through the PSC–a rate adjustment for current natural gas customers. “The existing customers can continue to have lower rates,” he added.

Hartline also said another major advantage would be that the company could hook more customers to the line who wish to use natural gas along the route the line will be taking to supply the poultry plant. “We will be making the connection at the north end and will be able to feed back to other areas along the route.” Also, he noted the line would help take care of low pressure problems that may have existed during extreme weather conditions in the past.

Hartline continued by noting the company would be able to hook up customers, businesses or individuals and added he hoped to be able to eventually extend the natural gas line to the county’s industrial park north of Albany and be able to offer natural gas to existing business and industry at that location.

“Navitas will be doing inspections and looking at potential areas we can run lines from town as the construction of the Keystone line is taking place,” Hartline said.

He noted Navitas, which is based in Eakly, Oklahoma and has a corporate office in California, was glad the company could supply gas to the area, and was able to work with Williams and other officials to supply natural gas to the Keystone plant.

The new line will begin behind Dalton Street in north Albany, run by the high school, out and down McWhorter Road to the U.S. 127 Bypass, then back up Ky.. 90 the Keystone processing plant.

Clinton County Judge/Executive Lyle Huff said the addition of natural gas to Keystone would be “very economically beneficial to the poultry plant and poultry industry in the county and surrounding area.” He continued that the gas line will be instrumental in attracting future business and industry to Clinton County. “Dr. (Robert) Williams and Thomas Hartline, as well as Jamie Noe of Bell Engineering of Lexington, the firm that designed the project, had been great to work with on this project.”

Albany Mayor Nicky Smith concurred with Judge Huff on the working relationship with Keystone, Navitas and Bell Engineering, saying a primary benefit of the gas line to the area’s largest employer was “retaining good jobs and hopefully bringing new ones to the area.” “Anytime the city can help a business save money and create jobs, I feel its our job to do so,” he added.

Caption for above: Several individuals representing companies, agencies and governmentally related entities were on hand last week at the Keystone Foods LLC plant for a ribbon cutting to mark the start of a natural gas line to be run to the facility beginning this month. Among those on hand were Dr. Robert Williams, General Manager of the Albany plant; Thomas Hartline, with Navitas gas; Jamie Noe of Bell Engineering; Clinton County Judge/Executive Lyle Huff and Albany Mayor Nicky Smith.

A host of people were on hand last week at a groundbreaking ceremony marking the beginning of construction of a pipeline that will carry natural gas from Albany to the Keystone Foods, LLC processing plant in the Snow Community of Clinton County. In addition to figures from Keystone Foods and the Navitas Gas Company involved in the pipeline construction, the ceremony was also attended by members of the Albany – Clinton County Chamber of Commerce, as well as officials from the Albany City Council and Clinton County Fiscal Court.