EnCana Corp. on Thursday unveiled a new 1.3 Bcf/d Rocky Mountain pipeline proposal, called Entrega Gas Pipeline Inc., that is expected to begin the regulatory process with a letter to the Federal Energy Regulatory Commission in the next few weeks. The proposed pipeline would bring gas from the Piceance Basin in northwestern Colorado to the Cheyenne gas trading hub in northeastern Colorado.

“We are meeting with FERC next week to discuss the project and we will probably be making a pre-filing in next couple of weeks,” EnCana’s Bill Oliver, president of midstream and marketing, said during a conference call with analysts. “We are in the preliminary stages on this, but historically we have proceeded on the plan of unlocking a region’s potential… So, we are, at the moment, looking at doing it ourselves. We are in discussions with third parties, and we see amazing opportunities for others to join us. There is the opportunity for us to increase our production in the Rockies, and we want it on by 2005.”

EnCana said the Entrega pipeline is a response to supply growth and the need to expand gas transportation capacity from the U.S. Rockies to major Midcontinent and Midwest markets. Several proposed and existing eastbound pipelines converge at the Cheyenne Hub, including new projects planned by Kinder Morgan and El Paso Corp.

The Entrega pipeline is expected to begin service in 2005. The project is subject to approval by the EnCana board of directors and regulatory approval by federal and state agencies. EnCana said it plans to hold an open season soon seeking market interest in proposed capacity on the pipeline.

©Copyright 2004 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.