The Federal Energy Regulatory Commission Wednesday voted to approve a certificate for increased compression to boost capacity on El Paso Natural Gas’ Bondad System by 140 MMcf/d to a total of 725.5 MMcf/d. The additional capacity can be as much as 60 MMcf/d more during the winter.

The capacity expansion, requested by El Paso last February would allow additional gas to flow from the San Juan Basin and Rocky Mountain area to a Blanco, NM, delivery point. The 140 MMcf/d of capacity is under a 10-year contract with BP Energy. Additional winter capacity will be sold on an interruptible basis.

In approving the certificate, the Commission rejected complaints from some East-of-California customers who said the system was constrained and any additional capacity should be dedicated to existing firm customers. The order noted that the recent conversion of full requirements shippers to a set contract demand was intended to incentivize shippers to bid for new capacity when they needed it instead of simply relying on the pipeline to provide it.

In the open season for the Bondad expansion, BP was the only firm bidder. Other potential shippers had ample opportunity to bid for the capacity, FERC noted.

BP initially will be charged a discounted production area rate. Costs of the project to be rolled in to existing rates in the next rate case will result in a rate decrease for existing shippers. There will be an incremental fuel charge of 0.87%.

The work includes the replacement of three existing compressors (10,740 hp) at the Bondad compressor station with three with a higher horsepower rating (18,390 hp). Work also will be done on other existing compressors at the station.

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