In a draft order at FERC’s regular meeting Wednesday, the Commission issued a certificate for Kinder Morgan Interstate Gas to add six new compressor stations to its pipeline system to increase firm transportation capacity between the Cheyenne Hub in Wells County, CO, and its Huntsman storage field in Cheyenne County, NB.

The certificate also allows Kinder Morgan to expand the storage capacity, deliverability and injection rate at the Huntsman field. The $26 million project will include the pipeline expansion and the addition of 10 injection and withdrawal wells at Huntsman. The storage expansion is expected to provide about 6 Bcf of new working storage capacity as well as 41 MMcf/d of associated injection capability and 68 MMcf/d of deliverability.

“By creating this new market center, Kinder Morgan will help address the needs of both producers and shippers in the Rocky Mountain region in several different ways,” FERC staff said in its presentation to the full Commission. “The project will give shippers in the region new choices as to the type of service offering at the [Cheyenne] Hub, particularly with regard to additional abilities to store gas and use receipt and delivery points on short notice.

“Second, the project will give customers gas supply management options required because of pricing volatility caused by varying weather conditions in the Rocky Mountain region. Finally, the Cheyenne market center will serve to enhance deliverability options in order to provide an additional outlet for Rocky Mountain gas in an otherwise constrained production area.”

FERC Chairman Patrick Wood said FERC made some changes to the project that he said “should not be an impediment to the proposed service, but if they are, we will hear about them on rehearing.” He said the project will provide some “needed liquidity and good gas management options in that increasingly important region…”

The project is fully subscribed under 10-year contracts with shippers (see Daily GPI, June 28, 2002).

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