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TEPPCO to Expand Jonah Gathering to 1.5 Bcf/d by December

With throughput on the Jonah Gas Gathering System in southwestern Wyoming averaging near capacity at 1 Bcf/d in the fourth quarter of 2004, TEPPCO Partners LP has announced plans for a $122 million expansion project that will loop the system and add about 500 MMcf/d of new capacity by December.

"This project demonstrates the continuing growth opportunities in the Jonah Gas Gathering System and our ongoing commitment to providing quality services to the producers of both the Jonah and Pinedale fields," said Barry R. Pearl, CEO of the general partner of TEPPCO.

The Phase IV Expansion will boost the system to 1.5 Bcf/d. It will include construction of 45 miles of pipeline that will loop Jonah's gathering system, as well as adding compression at three stations for a total increase of 33,300 horsepower of compression. This will enable lower operating pressures in the Jonah and Pinedale fields, allowing for increased throughput.

In 2003, TEPPCO completed a Phase III expansion of Jonah, which included the construction of 80 miles of pipeline to loop Jonah's gathering system in both the Pinedale and Jonah Fields, as well as the mainline system to Opal, WY; installation of 3,200 horsepower of compression to the system; and construction of the 250 MMcf/d Pioneer gas plant near Opal. And in December 2004, TEPPCO completed another expansion project, adding 100 MMcf/d of capacity to the system by installing compression.

However, production in the Green River Basin in southwestern Wyoming continues to grow because of drilling projects by Questar and many other producers. Green River is one of the most prolific and active basins in the United States.

Gas gathered by Jonah is primarily processed by others and delivered to several interstate pipeline systems that provide access to a number of West Coast, Rocky Mountain and Midwest markets. The system is commercially managed and operated by Duke Energy Field Services, LP (DEFS).

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