With demand rising in southern California and its pipes too fullto do anything about it, Transwestern Pipeline Co. is holding anopen season through Dec. 18 to solicit shipper interest in apossible mainline expansion. The pipeline is exploring theconstruction of a compressor station near Gallup, NM, that willincrease mainline capacity to the California border by 140,000Dth/d. The cost of the expansion is estimated at $15-$20 million.

Potential delivery points for the expansion are SoCal/Needles,PG&E/Topock, Mojave/Topock, and SoCal/Topock. The deadline forrequests is 5 p.m. CST Dec.18. The pipeline also is solicitingrequests from existing shippers who would likely turn backcapacity.

Transwestern’s need for expansion stems from its crowded pipes.The mainline is fully subscribed through March 1999, and even thenit will have only 8,000 Dth/d available through the end of thatyear. The San Juan lateral, which helps the mainline transport gasto California, is fully subscribed until 2000. Total capacity forthe mainline is 800,000 Dth/d.

According to the proposal, 50,000 Dth/d would be gathered fromthe San Juan Basin. The remaining 90,000 Dth/d would come from thePermian and/or Anadarko Basins, where the company believes up to140,000 Dth/d could be drawn if needed.

©Copyright 1998 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.