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WIC Proposes Compression Expansion of Piceance Lateral

El Paso's Wyoming Interstate Co. LTD. (WIC) last Tuesday filed an application seeking authorization to construct a 230 MDth/d compression expansion of its Piceance Lateral in Northwest Colorado.

WIC proposes to uprate an existing compressor at its existing Greasewood Compressor Station in Rio Blanco County, CO; build a new compressor unit and associated facilities at the Greasewood Compressor Station; and build a new midpoint compressor station in Moffat County, CO. The project, when completed, would increase the summer design day capacity of the lateral to 552.8 MMcf/d from 333.3 MMcf/d. This would equate to a year-round capacity of 580 MDth/d, WIC told the Federal Energy Regulatory Commission (FERC).

Via the uprate portion of the project WIC said it would be able to increase the available horsepower to 2,832 hp and allow the pipeline to provide an additional 50,000 Dth/d of capacity. The second Greasewood compressor unit will generate a maximum of 2,832 hp. This, in addition to the uprated existing unit, would increase the output of the Greasewood Compressor Station to 5,664 site hp. The midpoint compressor station (the Snake River Compressor Station) would generate a maximum 13,664 site hp, according to WIC.

WIC said it anticipates construction of the compressor station at Greasewood in Rio Blanco County and the midpoint compressor station (Phase II) would be completed by Oct. 1, 2009. Because the uprate (Phase I) does not involve any construction or significant material modifications, this portion of the project would be available for in-service within 14 days after WIC receives authorization from FERC. WIC asked the agency to grant a certificate for the new compression by Nov. 15 of this year.

Recognizing the demand for additional pipeline capacity, WIC conducted a binding open season in late 2007 soliciting shipper interest in incremental pipe capacity from the Greasewood Hub in Rio Blanco County to WIC's Wamsutter Compressor Station in Sweetwater County, WY, or delivery points west of Wamsutter including Kanda or Opal, WY.

WIC executed agreements with two shippers, Williams Power Co. and Anteror Resources Piceance Corp., for a combined 230,000 Dth/d of capacity commencing with the in-service date of the expansion facilities. The Williams agreement provides the company with an incremental 190,000 Dth/d of transportation capacity under an 11-year term, with a primary receipt point at Greasewood and a primary delivery point at Opal. Anteror's agreement provides for 40,000 Dth/d of additional capacity, with a primary receipt point at Meeker and a primary delivery point at Opal.

Currently Williams Power is the only firm transportation shipper on the Piceance Lateral, contracting for the full 350,000 Dth/d capacity of the line.

The Piceance Basin, which the lateral serves, has experienced significant growth in both the number of wells drilled and total production since 2005, according to WIC. Current wellhead production from the basin is approximately 1.3 Bcf/d, with an expected increase between 1.9 and 2.2 Bcf/d anticipated by 2015, the pipeline said. This increase in production is the result of an estimated 1,050 to 1,200 new wells being drilled annually.

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ISSN © 2577-9877 | ISSN © 1532-1266
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