NGI The Weekly Gas Market Report
Building on increased Powder River Basin production, Fort UnionGas Gathering LLC, has announced plans for a 200 MMcf/d expansionof capacity on its system.
Capacity on the 106-mile, 24-inch line from Gillette, WY, south toGlenrock will increase to 634 MMcf/d. The expansion is expected to bein service Oct. 1 in advance of the expansion downstream of WyomingInterstate Company’s Medicine Bow Lateral, which is expected to becompleted by Dec. 1 (see Daily GPI, Sept. 28, 2000)
The Medicine Bow line is upping capacity from about 325 MMcf/dto 1 Bcf/d with the addition of a 36-inch loop line. In additionto Medicine Bow, the Fort Union system also connects with theColorado Interstate Gas Powder River lateral and KN Intestate’ssystem.
“The expansion of Fort Union is necessary to accommodate theincrease in natural gas production that is taking place in thePowder River Basin,” said Rick Estes, CMS Field Services vicepresident of gas supply. “Fort Union is a critical link in the coalbed methane development.”
According to a recent report by the Wyoming State GeologicalSurvey, there is 25 Tcf of recoverable gas in the basin. “Thiseclipses previous estimates of recoverable gas that ranged fromnine to 12 Tcf,” the survey said. The Wyoming Oil and GasConservation Commission predicts as many as 5,000 new wells will bedrilled in the basin this year.
The Fort Union partners include managing partner CMS FieldServices, a subsidiary of CMS Energy; Crestone Powder River, LLC, asubsidiary of Crestone Energy Ventures LLC; Western Gas WyomingLLC, field operator of Fort Union and a subsidiary of Western GasResources; CIG Resources Company, administrative manager of FortUnion and a affiliate of Colorado Interstate Gas; and Bargath,Inc., a subsidiary of Barrett Resources Corporation.
Producers interested in securing gas gathering services fromFort Union should contact: Terry McHendry, CMS Field Services,918/560-4944; Mike Legler, Crestone Powder River, 303/575-6488;Chris Wilson, Western Gas Wyoming, 303/252-6061; Tom Piecuch,Bargath, Inc., 303/606-4345; or John Connor, CIG Resources,719/520-4245.
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