Right on schedule, Williston Basin Interstate Pipeline Co. put its Grasslands Pipeline into service for natural gas transmission service last Tuesday. Over two years after the pipe plan was first conceived and a little more than six months to the day after receiving a FERC certificate, the 253-mile pipe opened for service, transporting Powder River Basin coalbed methane gas and Rocky Mountain conventional supplies to markets in the Midwest and Midcontinent (see NGI, Nov. 19, 2001; June 9).

The subsidiary of MDU Resources Group Inc. said construction was completed with two crews, one working from the south end near Gillette, WY, and another crew starting from the north end near Killdeer in western North Dakota (see NGI, Dec. 15). The 253-mile, 16-inch natural gas pipeline spans sections of Wyoming, Montana and North Dakota and is initially capable of transporting 80 MMcf/d of firm natural gas supplies.

“As of today we are running about 25% of the capacity, but that is just because of the mid-month start-up,” said MDU Resources spokesman Tim Rasmussen. “Capacity has been contracted to marketers, and as a normal part of their business they sell gas on a monthly basis. We expect the pipeline to be fully utilized at the first of the month.”

While noting that the company still has costs “coming in” related to the pipeline construction, Rasmussen said the total project costs are estimated to be in the neighborhood of $70-75 million.

Commenting on the start-up, John K. Castleberry, CEO of Williston Basin, said, “Our initial discussions regarding expansion of our pipeline system began over three years ago, so this is a day we have been eagerly awaiting. But, our work isn’t done yet.”

Castleberry added that additional firm pipeline transportation capacity can be added in phases as gas production grows in the coalbed and other conventional fields in Wyoming and Montana. He said that firm pipeline volumes could increase to as much as 200 MMcf/d depending on market demand. In addition to transporting gas from developing coalbed and conventional natural gas production facilities, the pipeline also enhances access to Williston Basin’s large natural gas storage facilities in eastern Montana.

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