Williams to Expand Kern River To Serve CA Demand Growth
Kern River Gas Transmission, a subsidiary of Williams, filed an
application last week with FERC to add 124,500 Dth/d of additional
firm transportation capacity to its 922-mile pipeline system. The
company said the California Expansion Project will not only provide
additional transportation capacity from Wyoming to markets in
California, but also will provide an opportunity for Williams to
offer significantly reduced rates for firm transportation based on
the recent approval by FERC of Kern River's Extended Term Rate
"A combination of rapid growth and the development of new
gas-fired power generation facilities in California is fueling
expansion of the system," said Kirk Morgan, director of business
development for Kern River and Northwest Pipeline.
The project includes construction of three new compressor
stations, an additional compressor at an existing facility in
Wyoming, restaging a compressor in Utah, and upgrading two meter
stations. Kern River said the $80 million project is targeted to be
complete by May 1, 2002.
The company said demand for firm transportation on Kern River
was driven by several factors: the diversion of Canadian gas
supplies to markets in the Midwest from the Pacific region;
increased production in the Rocky Mountain basin; strong economic
growth in Kern River's market areas; and increased demand from
gas-fired electric generation facilities.
Williams said it anticipates holding an open season later this
year to determine the level of market interest in a second
expansion of the Kern River pipeline. "The demand for competitively
priced transportation to markets in Nevada and California continues
to grow. At the same time, gas producers in the Rocky Mountain
basin are stepping up production. An expansion on Kern River in
2003 could help bring that production to market," said Morgan.
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