Cheyenne Plains Gas Pipeline, a subsidiary of El Paso Corp., hasn’t even finished constructing its 380-mile line to deliver Rocky Mountain natural gas supplies to eastern markets, and FERC has issued a certificate to expand the system.

The mostly compression expansion would create 170 MMDth/d of additional firm transportation service, bringing the total capacity on the Cheyenne Plains 36-inch diameter pipeline to 730 MMDth/d when it’s completed.

Cheyenne Plains has entered into a binding precedent agreement with EnCana Marketing (USA) Inc. for the entire expansion capacity under a 10-year term at a negotiated rate of $0.3400/Dth or $10.3417 per month per Dth.

“Cheyenne Plains’ expansion will [offer] significant benefits to natural gas consumers by providing additional access to Rocky Mountain supplies. EnCana is a major producer actively developing natural gas supplies in the promising production areas of western Colorado and elsewhere. The project will also benefit Cheyenne Plains existing customers,” FERC said in the certificate order [CP04-345]. The soon-to-be in operation Cheyenne Plains now has 15 customers, including EnCana.

To provide the service to EnCana, Cheyenne Plains plans to install a 10,310 horsepower compressor unit at its Cheyenne Plains Compressor Station at the Cheyenne Hub. This will raise the authorized compression at the Cheyenne Plains Compressor Station to 30,930 hp from 20,620 hp.

Cheyenne Plains estimates the expansion facilities will cost $7.8 million, and plans to have them in service by Dec. 31, 2005. The original Cheyenne Plains pipeline (excluding expansion) is targeted for operation later this year, according to the FERC order.

The Cheyenne Plains pipeline will extend 380 miles from interconnects with Colorado Interstate Gas and Wyoming Interstate Co. at the Cheyenne Hub in Weld County, CO, to interconnections with six interstate pipelines and one intrastate pipeline in southwestern Kansas, including Kinder Morgan Interstate Pipeline, Natural Gas Pipeline Company of America, Southern Star Central Gas Pipeline, ANR Pipeline, Northern Natural Gas, Panhandle Eastern Pipe Line and Kansas Gas Service Co.

The project has received widespread support from Wyoming producers, who believe it will provide more outlets for their gas production and will bring prices for their gas more in line with Nymex-Henry Hub prices.

©Copyright 2004 Intelligence Press Inc. Allrights reserved. The preceding news report may not be republishedor redistributed, in whole or in part, in any form, without priorwritten consent of Intelligence Press, Inc.