N. Border Plans Extension to Tap Powder River
Powder River Basin gas producers may be about to get a more
direct route to Midwest markets. Northern Border Pipeline has
released plans to build a new 325-mile greenfield pipeline from
McCabe, MT, to Gillette, WY, to tap the rapidly growing production
in the Powder River, which is estimated to hold between 10 and 30
Tcf of gas.
The basin's rapid production growth has captured the attention
of the industry, with numerous proposed pipelines, including
several new interstate plans that would bring gas to the
Midcontinent gas grid. Northern Border's project, called the Bison
Pipeline, would add a new route out of the basin for between
375,000 and 500,000 MMBtu/d of production starting in November
2003. The pipeline is holding an open season on the proposal
through Dec. 5.
Receipt points are proposed with Bighorn, Fort Union Gas
Gathering, MIGC and Thunder Creek Gas Services. A bi-directional
interconnect accessing Williston Basin Interstate Pipeline's Baker
storage field also is proposed.
The connection with Northern Border will provide Powder River
producers with direct access to several local distribution
companies, including Montana-Dakota, Alliant Interstate Power,
MidAmerican Energy, Nicor Gas, People Gas and Nipsco. It also
provides access to ANR Pipeline, Midwestern, NGPL, Northern and
The projected recourse rate is 26 cents/Dth/d, but a negotiated
10-year demand rate cuts 4 cents off that. The pipeline is offering
"mileage-sensitive rates," which are expected to allow a shipper to
tailor supply access and optimize transportation value.
Northern Border plans to hold a briefing on the project in
Denver on Nov. 14. For more information, contact project director
Paul Miller in Omaha, NB, at (402) 398-7758 or James Hoff in Denver
at (303) 575-6475, or see the pipeline's Web site at
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