KN Energy will not be building its Front Runner Pipeline projectthis year as originally planned but may begin construction by nextsummer in time for service in November 1999, a company spokesmansaid last week. KN originally intended to have the project inservice for the upcoming heating season. Despite receiving anoptional certificate on the project from FERC in July, the companystill has not lined up the required customer commitments to moveforward.

“We have a year to build under the FERC certificate. Right nowit makes more sense to wait until next year. If this situation doesnot change, we will move forward on it, but there are potentialthings that could happen to [change our plans], particularly in ourdiscussions with [Public Service Co. of Colorado],” said KNspokesman Mark Stutz.

PSCo and Colorado Interstate Gas, which started constructionJuly 1 on a competing project called the Front Range pipeline, planto have their expansion in service by November. Both projects aredesigned to serve similar markets in the Front Range area ofColorado, which parallels the eastern slope of the Rocky Mountainsand includes Denver. The two companies have been discussingpossibly combining the projects into a single system but have notreached agreement. “I wouldn’t say [the plans to combine the twoprojects] are blown,” said KN’s Buddy Farah. “I’ve seen too manythings I thought would never happen happen. We’re still indiscussions with PSCo.”

Whether there is enough market growth along the Front Range tosupport two projects is “the $64,000 question,” Farah noted. “Ithink ultimately there will be. It’s just a matter of how fast youthink it would occur. We see the power generation being one of thefastest growing sectors.” But there’s also 2-3% per year of generalpopulation, industrial and commercial growth, KN’s Mark Stutz said.

The 53-mile Front Range Pipeline would have a capacity totransport 269,000 Dth/d from the Rockport Hub in northern Coloradoto Denver. A related Wyoming Interstate Gas project would providethe necessary upstream capacity for Front Range, through theaddition of new compression at a connection between CIG’s PowderRiver Basin lateral and WIC’s mainline and at WIC’s Cheyennecompressor station near Rockport. The 109-mile Front RunnerPipeline would extend from Rockport south to Greeley, CO, where itbranch off into several smaller laterals, and then to the Denvermetropolitan area. The pipeline would have a design capacity of 254MMcf/d.

Rocco Canonica

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