Pacific Connector Gas Pipeline completed an open season, with seven shippers executing precedent agreements for 1.49 Bcf/d of firm capacity, which exceeds the initial design capacity of 1 Bcf/d. The pipeline project is a partnership of Williams Pacific Connector Gas Pipeline LLC, PG&E Strategic Capital Inc. and Fort Chicago LNG II U.S. LP. The open season began Feb. 1 and closed March 5 (see Daily GPI, Feb. 5).
As shippers finalize their related gas supply and market commitments, Pacific Connector will determine whether firm transportation agreements will exceed the initial design capacity and allocate the contract demands, as necessary, to match capacity of 1 Bcf/d. Pacific Connector can be expanded in the future to deliver up to 1.5 Bcf/d.
"The interest we received from shippers clearly indicates they recognize the strategic value of the proposed project in providing access to global LNG supplies to meet future energy supply needs of the western United States," said Phil Wright, president of Williams' gas pipeline business.
The Pacific Connector pipeline is planned to move gas from the proposed Jordan Cove LNG (liquefied natural gas) import terminal to be located at Coos Bay, OR, to various delivery points in southern Oregon. The proposed pipeline includes approximately 230 miles of 36-inch diameter pipe between Coos Bay and Malin, with interconnects to Williams' Northwest Pipeline near Myrtle Creek, Avista Corp.'s pipeline near Shady Cove, as well as Pacific Gas and Electric Co.'s gas transmission system, Tuscarora Gas Transmission and Gas Transmission Northwest, all located near Malin (see Daily GPI, Nov. 13, 2006; July 24, 2006; April 13, 2006; Feb. 9, 2006).
Pacific Connector is subject to Federal Energy Regulatory Commission (FERC) jurisdiction, and an application for the project will be filed with the FERC later this spring with a proposed in-service in the fall of 2011 for both the Jordan Cove terminal and Pacific Connector.
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