FERC on Wednesday issued a certificate allowing TransColorado Gas Transmission Co. to carry out a mostly compression “North Expansion Project” from the Piceance Basin to the Greasewood Hub in Rio Blanco County, CO.

The certificate paves the way for TransColorado to construct two 1,000 horsepower (hp) and one 2,061 hp compressor units at a proposed new Greasewood Compressor Station in Rio Blanco County; new 24-inch diameter pipeline and meter facilities on the discharge side of Greasewood; along with associated facilities.

The proposed facilities would permit TransColorado to deliver up to 300,000 Dth/d of Piceance Basin gas to Greasewood Hub, where TransColorado interconnects, or has the ability to interconnect, with several existing and proposed interstate gas pipelines.

“TransColorado states that with the emergence of the Piceance Basin as a significant Rocky Mountain production field, shippers now seek to transport large additional volumes of gas northward to Greasewood Hub,” the order said [CP05-45]. It noted that its project would give northbound shippers this option.

The pipeline, which delivers gas in Colorado and New Mexico, conducted an open season for the project capacity in October 2004. It led to the execution of a precedent agreement with one shipper for a 10-year term at a discounted rate for firm transportation of 130,000 Dth/d for the first two years, 280,000 Dth/d for the next five years, and 230,000 Dth/d for the final three years.

“In instances where the shipper will not utilize the entire project capacity, TransColorado will post the unused capacity on its bulletin board as available for other shippers on an open-access, non-discriminatory basis,” the order said.

©Copyright 2005Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.