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FERC OKs Questar's Southern System Expansion in Utah, Colorado

FERC OKs Questar's Southern System Expansion in Utah, Colorado

The Federal Energy Regulatory Commission last Wednesday issued a certificate to Questar Pipeline Co. to carry out a 102,000 Dth/d expansion of its southern system in Utah and Colorado.

The project would serve the public interest by delivering an additional 102,000 Dth/d from various receipt points on Questar's interstate gas transmission system to an existing interconnection with Kern River Gas Transmission on Questar's Main Line No. 104 at Goshen, UT, to meet the long-term firm transportation needs of three shippers, the FERC order said [CP05-5].

The so-called "Southern System Expansion Project" calls for the construction of 18.7 miles of 24-inch diameter pipeline and associated facilities in Carbon County, UT; two new compressor stations in Utah (total horsepower 15,600); upgrades to the existing Oak Spring Compressor Station in Carbon County and the Greasewood Compressor Station in Rio Blanco County, CO; and an increase in the maximum allowable operating pressure from the current 801 psig to 860 psig on approximately 23.5 miles of Questar's existing Main Line 40 between the proposed Blind Canyon Compressor Station in Duchesne County, UT, and Questar's existing Whitmore Park block valve in Carbon County.

Questar previously said it hoped to begin construction in May of this year, with in-service targeted for October 2005. The Salt Lake City, UT-based energy company pegged the cost of construction at $54.6 million.

Questar said it has entered into firm transportation service agreements with three customers for the entire capacity: Bill Barrett Corp. contracted for 12,000 Dth/d for 10 years; EOG Resources Corp. contracted for 30,000 Dth/d for 10 years; and PacifiCorp contracted for 60,000 Dth/d for 20 years. All three shippers are natural gas producers.

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