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FERC Gives Green Light to Phase I of Entrega

The initial segment of the 330-mile Entrega gas pipeline project was given the green light to begin service by FERC last week. The 136-mile, 36-inch diameter pipeline extends from the Meeker Hub in Rio Blanco County, CO, through Moffat County, CO, to Wamsutter in Sweetwater County, WY. The line will add 750 MMcf/d of firm capacity to the region, significantly boosting gas deliveries out of the Piceance Basin. Service is expected to begin next month.

EnCana Corp., which owns Entrega but is selling it to affiliates of Kinder Morgan and Sempra Energy to make up the upstream portion of their Rockies Express project, is expected to direct about 360 MMcf/d of its Piceance Basin production to the first segment initially. EnCana is expected to ramp up production significantly over the next two years. An affiliate of Enterprise Products Partners LP last week entered into a long-term contract to process up to 1.3 Bcf/d of EnCana Oil and Gas (USA) Inc.'s Piceance Basin gas production (see related story).

The first segment of the Entrega pipeline project interconnects with the Colorado Interstate Gas (CIG) and Wyoming Interstate Co. transmission systems at Wamsutter. Those pipelines would carry the gas to markets east and west of Wamsutter until the second segment of Phase I of the Entrega project is built to the Cheyenne Hub in northern Colorado. The 191-mile second segment would extend the system from Wamsutter through Carbon, Albany and Laramie Counties, WY, and Larimer County, CO, to the Cheyenne Hub, where it would interconnect with multiple downstream pipelines. The second segment is expected to be ready for service next December.

Phase II of the Entrega project would add compression, boosting firm capacity to 1.5 Bcf/d in January 2008. It includes adding 15,400 horsepower of compression at the Meeker Hub Compressor Station, 30,000 hp at the Bighole Compressor Station in Moffat County, CO, and 20,620 hp at the Wamsutter Compressor Station.

Kinder Morgan and Sempra Energy also have signed an agreement to lease 1.5 Bcf/d of proposed capacity on Questar's Overthrust Pipeline, including a new extension to Wamsutter that Overthrust would build, in order to bring gas to western markets via the Opal Hub in western Wyoming. Details of that project are still being worked out following open seasons that concluded this month.

Kinder Morgan and Sempra are expected to make final decisions next month on whether to proceed with the Overthrust lease and whether to build the 1,350-mile Rockies Express pipeline from Colorado to Ohio (see NGI, Nov. 28, 2005).

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