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Kinder, Sempra Hold Open Seasons On Expansion, Extension of Entrega Pipeline

Kinder Morgan Energy Partners and Sempra Pipelines & Storage launched two separate binding open seasons last Wednesday to test market interest in an expansion and extension of EnCana's Entrega Gas Pipeline system, which Kinder Morgan and Sempra plan to buy as part of their $3 billion Rockies Express Project. Rockies Express would carry gas from the terminus of Entrega in northern Colorado more than 1,300 miles to the Clarington Hub in eastern Ohio.

One of the current open seasons would cover capacity on a proposed extension of Entrega from the Wamsutter Hub in Sweetwater County, WY, to the Opal Hub in Lincoln County, WY. The 2 Bcf/d extension would provide West Coast and Southwest shippers on Kern River Gas Transmission access to more Piceance Basin production. It also would provide Northwest shippers with Piceance supply access.

The other open season would be for a 1 Bcf/d expansion of Entrega, which will run 330 miles from the Piceance Basin in western Colorado north to the Wamsutter Hub in Wyoming and then east to the Cheyenne Hub in northern Colorado. Entrega will be operated by KMP once it is purchased, the companies said (see NGI, Oct. 24). The open seasons for both projects began last Wednesday and will continue until 5 p.m. CST Dec. 19.

The eventual Rockies Express pipeline would extend 1,350-miles from the Cheyenne Hub to the Clarington Hub in Ohio at connections with Dominion Gas Transmission, Texas Eastern and Dominion East Ohio. The pipelines also would include connections with Tennessee Gas, Columbia Gas, ANR Pipeline, Panhandle Eastern, Trunkline Gas, Midwestern Gas, Natural Gas Pipeline Company of America, Northern Natural and Trailblazer. Pending shipper commitments and regulatory approvals, the first segment of the proposed Rockies Express Pipeline is projected to be in service by late 2007. The second and third segments of the pipeline are expected to begin service in 2008 and 2009, respectively.

Entrega already is under construction from the Meeker Hub in Rio Blanco County, CO, to the Wamsutter Hub. It ultimately will reach the Cheyenne Hub. The expected in-service date of the Entrega extension to Opal or expansion is late 2007. However, Entrega envisions that interim service may be available prior to that date, and it intends to negotiate mutually acceptable terms with interested shippers.

For details on the open seasons contact Jeff Rawls at Kinder Morgan at (303) 914-4903 or Ryan O'Neal at Sempra Pipelines & Storage at (619) 696-4585.

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