FERC Wednesday gave El Paso Corp.’s Ruby Pipeline the go-ahead to begin service on the 680-mile, 42-inch diameter line that will deliver Rockies natural gas to West Coast markets.

Ruby earlier had indicated that the long-haul pipeline might be available for service as early as Wednesday, but El Paso spokesman Richard Wheatley told NGI Wednesday that the start-up would be at a later date. When pressed for an in-service date, he said, “We can’t say when the pipeline will officially go into service…We [first] have to make sure that all of our customers and shippers have [their] nominations in place for the coming gas day.”

From the looks of things, Ruby began the ramp-up on Wednesday, as ICE reported one transaction for gas to flow Thursday at Ruby Pipeline Receipt Pool priced at $4.05/MMBtu and two deals at Ruby Pipeline Malin priced at $4.17 and $4.21/MMBtu.

Considering Ruby is just starting up, it is not too surprising that gas nominated for Thursday’s gas flow on the pipe was extremely light. Shippers nominated approximately 47 MMcf/d at the Emerald Springs receipt point in Lincoln County, WY, but that represents just 14% of Ruby’s operating capacity at that location (see chart). The rest of Ruby’s listed receipt and delivery points are slated to run at less than 10% of operating capacity on Thursday. Just 4 MMcf/d was nominated at the terminus of the pipeline at Onyx Hill (Malin, OR), where Ruby connects with the Pacific Gas and Electric system.

The Federal Energy Regulatory Commission (FERC) granted Ruby’s unusual request of placing the pipeline into service even though restoration on the project was not completed yet. But the agency warned Ruby that if the restoration work is not completed to FERC’s satisfaction, “the matter may be referred to the Commission’s Office of Enforcement for corrective action.”

The $3.55 billion Ruby Pipeline, which has a capacity of 1.5 Bcf/d and is expandable to 2 Bcf/d, will transport natural gas from an existing supply hub at Opal, WY, to interconnections near Malin, OR [CP09-54]. Ruby will deliver gas into the Pacific Gas and Electric, Gas Transmission Northwest Corp., Paiute Pipeline and Tuscarora Gas Transmission systems.

Approximately 1.1 Bcf/d of Ruby’s capacity is under 10- to 15-year contracts, according to Wheatley.

While Ruby is designed to operate at a maximum allowable operating pressure (MAOP) of 1,440 psig, it asked to place its pipeline into service initially at an MAOP of 1,296 psig. The pipeline said it will be able to meet all of its current contractual obligations for firm transportation at the reduced MAOP.

Ruby told FERC that it expects the pipeline to have an approximate throughput load factor of less than 60% for the first several months following commencement of operations. While long-term demand for gas in the project area remains strong, Ruby said near-term pipeline utilization is likely to be lower than expected.

Earlier this week FERC approved Ruby’s requests to revise upward its initial rates for firm long-term transportation service to recover anticipated higher project costs, and to revise its initial in-kind fuel retention rate downward to reflect an expected decrease in projected fuel consumption when the pipeline starts up (see Daily GPI, July 26).

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