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Questar Tests Market Interest in Two Pipeline Expansions in Utah, Colorado

Questar Pipeline announced two open seasons last Tuesday to test producer and market interest in about 260,000 Dth/d of new pipeline capacity out of the Uinta and Ferron basins in eastern Utah and the Piceance Basin in western Colorado.

One project, Questar's Southern System Expansion, would provide westerly gas flows to new power plants, Kern River Gas Transmission and to Salt Lake City-based utility affiliate Questar Gas. The other expansion project, the Greasewood/Meeker Expansion, would provide greater access to new pipelines and pipeline expansions that would bring gas to eastern markets.

The company expects to provide shippers with up to 100,000 Dth/d of new capacity in the Southern System Expansion, which would bring gas to the Goshen delivery point at Kern River.

"We've just basically run out of capacity on that part of our Southern System," said Shelley Wright, director of business development for Questar Pipeline. "We've sold all of our capacity going West."

She said there has been interest in additional capacity from producers and from markets. PacifiCorp is currently testing its 500 MW gas-fired Kern Creek plant in Mona, UT. The plant will begin operation soon at about 240 MW and ramp up over the next year. Lakeside, another 500 MW gas-fired power plant being built by PacifiCorp, recently was approved by regulators. It's farther north on Kern River and will be served by displacement, said Wright. In addition there is an existing 140 MW power plant in Payson, UT.

The Southern System Expansion would include new compression and a 40-mile extension of Main Line 104. Potential receipts of new supply would come from points west of the Fidlar compressor station as well as from the Clay Basin storage field and Questar's northern system. Questar anticipates reservation charges up to $7.827/Dth/month, a usage charge of $0.00267/Dth and a maximum 100% load factor rate of $0.26/Dth for the Southern System expansion capacity.

Questar's Greasewood/Meeker project is expected to include about 160,000 Dth/d of new firm capacity on its Southern System from the Uinta, Ferron and Piceance Basins, as well as from Clay Basin storage and from Questar's northern system.

The project would provide new access to new or expanding eastbound pipeline systems, including TransColorado Gas, EnCana's proposed 1.3 Bcf/d Entrega Pipeline and to Wyoming Interstate. It also would include a new interconnect near Dragon Trail with Northwest Pipeline, which could provide access to markets in the Northwest or Southwest.

Questar anticipates a maximum reservation charge for the project of $5.288/Dth/month, a usage charge of $0.00267/Dth and a maximum load factor rate of $0.17652/Dth.

Both of the proposed expansion projects are expected to be in service by Mid 2007 but could be in service earlier depending on the timing of requests and regulatory work. For more information go to http://www.questarpipeline.com/ or call Tom Myberg at (801) 324-2978. The open seasons end March 31.

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