FERC Thursday issued El Paso’s Wyoming Interstate Co. Ltd. (WIC) pipeline a certificate for a compression expansion that will add nearly 230,000 Dth/d of takeaway capacity on its Piceance Lateral.

“We find that WIC’s proposal is in the public interest because it will meet increasing shipper demand for the transportation of natural gas produced in the Piceance Basin in the Rocky Mountain region to downstream markets,” the order said [CP08-403].

To justify its expansion, WIC cited production increases in the Piceance Basin, which are the result of an estimated 1,050 to 1,200 new wells being drilled in the basin annually.

WIC proposes that its expansion be built in two phases. Phase I calls for the uprate of an existing compressor at the Greasewood Compressor Station in Rio Blanco County, CO, increasing available horsepower to 2,832 hp from 1,650 hp and boosting capacity by 50,000 Dth/d. WIC estimated that it will be able to complete the uprate within 14 days of receiving FERC approval.

In Phase II, WIC proposes to install and operate a second compressor unit and associated facilities at the Greasewood Compressor Station and build a 13,664 hp Snake River Compressor Station in Moffat County, CO. Phase II would create an additional 179,500 Dth/d of capacity.

Phase II of the expansion is targeted for completion by Oct. 1, 2009, according to WIC. FERC granted WIC ‘s request for a predetermination to roll in the costs ($61.6 million) of the compression expansion into WIC’s existing Piceance Lateral incremental reservation rates.

Williams Power Co., the only firm transportation customer on WIC’s Piceance lateral, and Antero Resources Piceance Corp. have been awarded the entire expansion capacity for a term of 11 years. Williams has subscribed to 190,000 Dth/d and Antero has committed itself to 40,000 Dth/d.

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