NGI The Weekly Gas Market Report
Although it has been overshadowed lately by the boomingproduction in the Powder River Basin in Montana and Wyoming, theRaton Basin in southeastern Colorado and northeastern New Mexicohas nearly doubled its coal-bed methane production over the pasttwo years. As a result, Colorado Interstate Gas is planning to beefup its gas transportation facilities and increase basin takeawaycapacity by 85,000 Dth/d to 200,000 Dth/d starting in September2001.
The pipeline company filed an application with FERC yesterdayfor the Raton Basin expansion project. It held an open season forthe project in July and customers signed agreements for the entireproposed expansion space with planned gas deliveries in Texas andOklahoma.
The $56 million project will include the addition of two newcompressor stations near Trinidad and Kim, CO and another at CIG’sKeyes station in Keyes, OK. It also will include efficiencymodifications at the Beaver County, OK, compressor station, newtreating facilities and the addition of about 70 miles of newtransmission pipeline. Pending FERC approval, CIG plans to beginconstruction next May with service by late summer.
Once one of the chief coal producing areas west of theMississippi River, the Raton is estimated to hold more than 18 Tcfof coal-bed methane gas.
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