TW Plans to Add 50 MMcf/d to San Juan Lateral
Transwestern Pipeline has filed an application with FERC to
build a new 10,000 hp compressor station near Thoreau, NM, off of
its San Juan Lateral and to add facilities to its Bloomfield and La
Plata compressor stations. The $11.6 million project will provide
an additional 50 MMcf/d of firm transportation service on the San
Juan Lateral downstream of the Bloomfield compressor station and
will allow Transwestern to operate its mainline at its certificated
capacity of 1.1 Bcf/d on a firm basis.
Transwestern said all of its existing capacity is fully
subscribed and its ability to provide incremental capacity is
limited. It held an open season in November and December 1998 and
received requests from 17 shippers for 1.2 Bcf/d of incremental
capacity. But so far it has signed precedent agreements with
shippers for only 25,000 Dth/d of the new capacity on the San Juan
Lateral (50% of the proposed additions) and for 25,000 Dth/d of the
new capacity on the mainline west to the California border (36% of
the new additions). Transwestern said it is continuing to negotiate
with other interested parties for the remainder of the proposed
capacity and will file additional precedent agreements with
shippers when they are signed.
Transwestern has agreed to charge discounted rates for the
incremental capacity, but said it expects to receive revenues in
excess of the incremental cost of service of the proposed expansion
once all of the capacity is under contract.
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