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FERC Clears 'Remaining Portion' of Cheyenne Plains Pipeline for Service

FERC Clears 'Remaining Portion' of Cheyenne Plains Pipeline for Service

FERC on Thursday gave Cheyenne Plains Gas Pipeline Co., a subsidiary of El Paso Corp., the green light to begin service on the "remaining portion" of its 380-mile pipeline that transports natural gas from the prolific Rocky Mountain region to markets in the Midcontinent and Midwest.

Specifically, the Federal Energy Regulatory commission authorized service on a newly constructed jumper compressor and gas treatment facilities located at the Cheyenne Hub in Weld County, CO, in its latest order [CP03-301].

The Commission earlier this month approved the start of operations on the 36-inch diameter mainline in Colorado and Kansas, on three small diameter interconnecting pipelines in Kiowa County, KS, and at nine receipt and/or delivery meter stations on the system. But it held off approval of the compressor and gas treatment facilities.

The initial flow of natural gas on the Cheyenne Plains pipeline was 48.5 MMcf/d, according to El Paso spokeswoman Kim Wallace. She said the pipeline is expected to reach its full capacity of 560 MMcf/d by Jan. 1. The pipeline plans to add 170 MMcf/d of capacity by December 2005 or early 2006, bringing the total capacity on the Cheyenne Plains system to 730 MMcf/d when completed.

The Cheyenne Plains pipeline extends from interconnects with Colorado Interstate Gas and Wyoming Interstate Co. at the Cheyenne Hub in Weld County to interconnections with six interstate pipelines and one intrastate pipe 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 Cheyenne Plains line is fully contracted on an annual basis, according to El Paso. Cheyenne Plains also has entered into a binding precedent agreement with EnCana Marketing (USA) Inc. for the entire 170 MMcf/d of expansion capacity under a 10-year term at a negotiated rate.

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