Williams' Northwest Pipeline has received authorization from FERC to place its 30-inch Parachute Lateral Pipeline project in the capacity-constrained Piceance Basin of Colorado into service.

The 37.6-mile pipeline and related facilities will provide 450,000 Dth/d from Williams' production facilities in Garfield County, CO, to the Greasewood Hub. The Federal Energy Regulatory Commission (FERC) approved the pipeline project last year (see Daily GPI, Aug. 18, 2006).

In late 2005, Northwest conducted an open season to solicit binding contractual commitments for firm transportation service on the pipeline (see Daily GPI, Dec. 16, 2005). Affiliate Williams Power also executed a precedent agreement to provide secure transportation service on the lateral for a 15-year term.

"Completion of the lateral provides us with additional opportunities to provide transportation capacity from the rapidly growing western Colorado supply region to other expanding natural gas markets throughout the United States," said Phil Wright, president of Williams Gas Pipeline.

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