Shale Daily / NGI All News Access

Questar Holds Open Season to Expand Uinta Takeaway Capacity

Responding to the increase in natural gas production out of the Uinta Basin, Questar Pipeline Co. will be holding a binding open season to solicit support for an expansion of takeaway capacity by extending its Jurisdictional Lateral 138 (JL138) to the Myton Yard in Myton, UT.

The proposed expansion will involve installation of 4.3 miles of pipe and ancillary facilities that will enable Questar to offer 30,000 Dth/d of incremental transportation capacity from receipt points located on JL138, JL46 and JL47 with possible deliveries available at the following locations:

Infrastructure to support high-Btu natural gas production out of the Uinta is continuing to take shape. Last summer, the Federal Energy Regulatory Commission gave Questar the green light to construct new and/or modify existing gas pipeline facilities in Duchesne and Uinta counties, UT, so shippers can transport high-Btu gas produced in the Uinta Basin to the Chipeta facility (see Shale Daily, July 20, 2012). Chipeta provides refrigeration and cryogenic processing services for production from the Natural Buttes Gathering System, which is 100% owned by Anadarko, and from the Three Rivers Gathering System.

Questar noted that shippers acquiring this open season capacity at the required reservation rate and term will also have access to all other mainline receipt and delivery points on its system on a secondary basis. Other receipt and delivery points may be available depending on the response to this open season, which began Monday and concludes June 14.

The pipeline said as long as it has sufficient binding support by Aug. 1 to underwrite the cost of the required facilities, it anticipates that the new facilities can be placed in service by November 2014. For more information on the open season, contact Questar Pipeline representatives Tom Myrberg at (801) 324-2978 or Lori Creer at (801) 324-5349.

Development of the Uinta has been ramping up in recent years, with more than 40 large and small producers snapping up leaseholds. According to NGI's Shale Daily analysis of company reports, ExxonMobil is currently the largest leaseholder in the Uinta with 260,000 net acres. The top five is rounded out by QEP Resources (257,000), Newfield Exploration (227,900), Anadarko Petroleum (189,000) and EP Energy (176,000).

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