NGI The Weekly Gas Market Report / NGI All News Access

WIC Targets Coal-bed Gas With Medicine Bow

WIC Targets Coal-bed Gas With Medicine Bow

The Coastal Corp.'s Wyoming Interstate Co. (WIC) filed an application with the FERC for construction of the Medicine Bow Lateral, a new 134-mile, 24-inch diameter gas pipeline designed to provide transportation access to the developing Powder River Basin in Wyoming and Montana. Medicine Bow will receive Powder River coal-bed methane gas from pipelines near Glenrock, WY, and transport it to WIC's mainline, west of Cheyenne, WY.

The $80.5 million project initially will provide capacity of 260 MDth/d and can be expanded as necessary to accommodate production increases from the Powder River Basin, pipeline company officials said.

"Recent passage of federal legislation clarifying rights to drill for coal-bed methane gas under existing leases cleared the way for significant development of the Powder River Basin," said Jon R. Whitney, WIC CEO. "Powder River is estimated to have more than 39 Tcf of natural gas in place, making it a major new natural gas supply source to meet growing national demand. The Gas Research Institute projects that annual natural gas consumption in the United States will grow from the current level of 23 Tcf to 30 Tcf by the year 2015," he noted.

Medicine Bow is expected to be in service Jan. 1, 2000, and WIC has long-term transportation commitments totaling 178 MDth/d. Commitments are expected to increase to 440 MDth/d over a four-year period, the company said. WIC appears to have taken the lead over other pipeline companies, such as Questar and KN Energy, that have proposed new projects to serve the basin. However, it's early in the game in the Powder River, where producers are only just beginning to tap a vast resource. Some observers believe production there could support several new pipelines over the next few years.

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.

ISSN © 2577-9877 | ISSN © 1532-1266
Comments powered by Disqus