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El Paso Tests Market for California Pipeline Capacity

El Paso Tests Market for California Pipeline Capacity

El Paso Natural Gas is holding an open season to determine market interest for firm transportation service through proposed capacity on its Line 1903 in California in association with some capacity that it plans to buy on the affiliated Mojave Pipeline System. The open season ends March 4.

The project contemplates moving gas from Topock, AZ, or Daggett, CA, to Ehrenberg, AZ, or markets east of California (EOC) under extensions of existing contracts or through new firm transportation deals with customers. El Paso also is offering transportation from Daggett to Wheeler Ridge, near Bakersfield, CA.

Up to 440 MMcf/d of capacity could be made available from Topock to Ehrenberg or EOC markets, El Paso said. Shippers with existing contracts can amend them to re-designate delivery points to the Ehrenberg area or to the EOC markets by extending the term at the currently effective California zone rates, the pipeline said. Available delivery points are anticipated to include Southern California Gas Co., Blythe Energy, North Baja Pipeline, EOC market points located directly on El Paso's South Mainline, or other interconnects.

El Paso said it also will offer incremental transportation from Topock to Ehrenberg or EOC market points. Receipt points are anticipated to be available at Topock from El Paso and Transwestern.

El Paso plans to place in service Line 1903 capacity from a point near Daggett, south to a point near Ehrenberg. Up to 320 MMcf/d of capacity will be made available from Daggett area receipt points including potential interconnections with Mojave, Kern River, SoCal and PG&E.

For the Daggett to Wheeler Ridge portion, El Paso proposes to have about 210 MMcf/d of Line 1903 capacity with Mojave, Kern River, SoCal and PG&E near Daggett to potential delivery interconnects with SoCal and Mojave Pipeline at Wheeler Ridge.

El Paso said it plans to file to roll the costs of the project into its existing rates in its 2006 rate case proceeding. Between the in-service date and the date when the rates would reflect the rolled in costs, all shippers with transportation service that utilizes the Mojave pipeline capacity will be charged incremental fuel, not to exceed 1%, El Paso said.

For more details on the open season see El Paso Natural Gas's non-critical notices on its web site bulletin board at http://passportebb.elpaso.com.

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