Construction of a connection linking LaGrange to a major natural gas pipeline beginning in March will be cheaper than originally expected.

The 12.5-mile link to Transcontinental Gas Pipeline, also known as Transco, will cost the city around $5.5 million instead of the earlier estimate of $7.5 million.

“With the current economic conditions, prices for labor and materials have gone down a bit,” city utilities director Patrick Bowie said.

The pipeline connection will prepare the city for the start of production at Kia Motors later this year. Kia’s plant in West Point will increase the city’s current load of gas by 40 percent to 50 percent once in full production, Bowie said.

LaGrange will provide gas to Kia under a joint agreement by the city and West Point. LaGrange’s current pipeline runs through Webb Road and the portion of land that was annexed into West Point before construction of the plant began. As part of the agreement, West Point provides water to LaGrange residents around Gabbettville.

“We are working cooperatively with West Point on this,” Bowie said. “Typically once a gas system is in place in a certain location, it’s not smart to build another one nearby because of safety reasons. That’s why West Point chose not to build one to service Kia.”

Transco is one of the nation’s most extensive pipelines, covering 10,500 miles from Texas to New York. The city’s current pipeline connects to Southern Natural Gas, or Sonat, a pipeline which covers 8,000 miles.

The new connection will tie the city’s current line, which runs from West Point to Grantville, farther north through Coweta County to Transco.

City Council approved an intergovernmental contract with Grantville on Tuesday afternoon stating that La-Grange will pay 3 percent of its actual receipts for sales of gas to customers within Grantville’s city limit or a fee of 3.74 cent per therm within its negotiated safety territory.

Another factor is a bilateral contractual agreement between the city and Kia Motors, which ensures Kia will be responsible for any additional expenses related to it.

The new delivery station to be constructed by Transco in Coweta County will cost LaGrange $976,000.

LaGrange is also waiting on a Feb. 26 decision by the Georgia Public Service Commission. The commission doesn’t normally regulate LaGrange’s pipeline placements, but in this case, the pipeline will extend past Troup County requiring state regulations instead of county.

After that decision is made, LaGrange will pay the interconnect fee to Transco.

In other matters Tuesday, City Council:

— Agreed to hold a public hearing on further construction and continuation of the unopened portion of Louise Street on the east side of Ragland Street. The road would connect to Ragland and run east parallel to Lafayette Parkway.

— And learned that the city obtained a water treatment permit for 22 million gallons of water a day as opposed to the previous permit for 16 million gallons a day.