Coastal’s Colorado Interstate Gas (CIG) has teamed up withSouthwest Gas subsidiary Paiute Pipeline on a new gas pipelineproject designed to deliver new coal-bed methane production in Utahto growing markets in Nevada and Southern California.

The Ruby Pipeline will extend more than 400 miles from CIG’swestern terminus in Uintah County, UT, to an interconnection withPaiute Pipeline near Elko, NV. The pipeline also will interconnectwith the Kern River Pipeline near its Dog Valley meter stationsouth of Salt Lake City and will pass through the developingcoal-bed methane fields near Price, UT.

Depending on market interest, the pipe is expected to be 20 to24 inches in diameter and carry 250 MMcf/d. Pending Federal EnergyRegulatory Commission and corporate board approval, an in-servicedate of fall 2001 is expected.

On its own, CIG held an open season that ended April 6 to gaugeinterest in the same line. However, at that time the project wassomewhat limited and not defined as well as it is now, aspokeswoman said. The company is contacting parties who respondedto the previous open season to update them on the new project andreconfirm their interest, she said.

“Market conditions are excellent for the Ruby Pipeline,especially given Kern River Pipeline’s recently announced plans toexpand its mainline from Opal, WY, to southern California,” saidJon R. Whitney, CIG CEO (See NGI Nov. 2, 1998). “Ruby will provideeffective transportation for Rocky Mountain natural gas to servegrowing markets in southern California and northern Nevada, as wellas communities and industrial facilities along Ruby’s route whichcurrently do not have natural gas service.” In September, Williamsannounced the first major expansion of its Kern River line since itwent into operation in 1992 (See NGI Sept. 28, 1998). The projectis a 150-mile lateral extension to Long Beach, CA, with a minimumcapacity of 300 MMcf/d. It also hopes to increase capacity on itsmainline by 250 MMcf/d and is offering customers significantlydiscounted term-differentiated rates to sign up for new space.

CIG’s Ruby project targets gas produced from developing coal-bedmethane fields around Price, UT, where the pipeline has beentalking to producers for about a year, said Ed Miller, CIG seniorproject manager. “They’re looking for markets for the gas, and thatsort of sparked our interest.” On the market side of the project,Miller said Nevada’s demand for gas is skyrocketing. NortheasternNevada has gone without supplies to meet the needs of the miningindustry. The Ruby line also could serve a power plant beingconsidered by Coastal Power north of Elko, but the mining industryis the main target in that area.

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

Joe Fisher, Houston

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