Kern River Gas Transmission, a subsidiary of Williams, filed anapplication last week with FERC to add 124,500 Dth/d of additionalfirm transportation capacity to its 922-mile pipeline system. Thecompany said the California Expansion Project will not only provideadditional transportation capacity from Wyoming to markets inCalifornia, but also will provide an opportunity for Williams tooffer significantly reduced rates for firm transportation based onthe recent approval by FERC of Kern River’s Extended Term RateProgram.

“A combination of rapid growth and the development of newgas-fired power generation facilities in California is fuelingexpansion of the system,” said Kirk Morgan, director of businessdevelopment for Kern River and Northwest Pipeline.

The project includes construction of three new compressorstations, an additional compressor at an existing facility inWyoming, restaging a compressor in Utah, and upgrading two meterstations. Kern River said the $80 million project is targeted to becomplete by May 1, 2002.

The company said demand for firm transportation on Kern Riverwas driven by several factors: the diversion of Canadian gassupplies to markets in the Midwest from the Pacific region;increased production in the Rocky Mountain basin; strong economicgrowth in Kern River’s market areas; and increased demand fromgas-fired electric generation facilities.

Williams said it anticipates holding an open season later thisyear to determine the level of market interest in a secondexpansion of the Kern River pipeline. “The demand for competitivelypriced transportation to markets in Nevada and California continuesto grow. At the same time, gas producers in the Rocky Mountainbasin are stepping up production. An expansion on Kern River in2003 could help bring that production to market,” said Morgan.

Alex Steis

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