NGI The Weekly Gas Market Report / NGI All News Access

CIG, Paiute Plan New Nevada Pipe

CIG, Paiute Plan New Nevada Pipe

Coastal's Colorado Interstate Gas (CIG) has teamed up with Southwest Gas subsidiary Paiute Pipeline on a new gas pipeline project designed to deliver new coal-bed methane production in Utah to growing markets in Nevada and Southern California.

The Ruby Pipeline will extend more than 400 miles from CIG's western terminus in Uintah County, UT, to an interconnection with Paiute Pipeline near Elko, NV. The pipeline also will interconnect with the Kern River Pipeline near its Dog Valley meter station south of Salt Lake City and will pass through the developing coal-bed methane fields near Price, UT.

Depending on market interest, the pipe is expected to be 20 to 24 inches in diameter and carry 250 MMcf/d. Pending Federal Energy Regulatory Commission and corporate board approval, an in-service date of fall 2001 is expected.

On its own, CIG held an open season that ended April 6 to gauge interest in the same line. However, at that time the project was somewhat limited and not defined as well as it is now, a spokeswoman said. The company is contacting parties who responded to the previous open season to update them on the new project and reconfirm their interest, she said.

"Market conditions are excellent for the Ruby Pipeline, especially given Kern River Pipeline's recently announced plans to expand its mainline from Opal, WY, to southern California," said Jon R. Whitney, CIG CEO (See NGI Nov. 2, 1998). "Ruby will provide effective transportation for Rocky Mountain natural gas to serve growing markets in southern California and northern Nevada, as well as communities and industrial facilities along Ruby's route which currently do not have natural gas service." In September, Williams announced the first major expansion of its Kern River line since it went into operation in 1992 (See NGI Sept. 28, 1998). The project is a 150-mile lateral extension to Long Beach, CA, with a minimum capacity of 300 MMcf/d. It also hopes to increase capacity on its mainline by 250 MMcf/d and is offering customers significantly discounted term-differentiated rates to sign up for new space.

CIG's Ruby project targets gas produced from developing coal-bed methane fields around Price, UT, where the pipeline has been talking to producers for about a year, said Ed Miller, CIG senior project manager. "They're looking for markets for the gas, and that sort of sparked our interest." On the market side of the project, Miller said Nevada's demand for gas is skyrocketing. Northeastern Nevada has gone without supplies to meet the needs of the mining industry. The Ruby line also could serve a power plant being considered by Coastal Power north of Elko, but the mining industry is the main target in that area.

The Paiute Pipeline, which Ruby would tie in to, supplies two Southwest Gas LDCs, Southwest Gas Northern Nevada and Southwest Gas Northern California. Paiute spokesman Ed Kulas said gas moving on Ruby would serve the Nevada LDC and could end up serving the California one, too. The open season for Ruby runs through Friday, Jan. 8.

Joe Fisher, Houston

©Copyright 1998 Intelligence Press, Inc. All rights reserved. The preceding news report may not be republished or redistributed in whole or in part without prior written consent of Intelligence Press, Inc.

Copyright ©2018 Natural Gas Intelligence - All Rights Reserved.
ISSN © 2577-9877 | ISSN © 1532-1266
Comments powered by Disqus