NGI The Weekly Gas Market Report
Coastal’s Wyoming Interstate Co. has completed construction ofits Medicine Bow Lateral pipeline and begun moving gas. “Wereceived excellent customer response to this project from the verybeginning, and we now are ready to move more of their Powder RiverBasin gas to market,” said Jon Whitney, CEO of Colorado InterstateGas (CIG), which operates Wyoming Interstate (WIC).
Construction on the Medicine Bow Lateral began in August.Medicine Bow is a new 150-mile, 24-inch diameter pipeline with7,170 horsepower of compression at the newly constructed DouglasCompressor Station. It will receive Powder River Basin coalbedmethane gas from Ft. Union Gas Gathering LLC and Thunder Creek GasServices LLC at the Douglas Compressor Station and transport it toWyoming Interstate’s mainline west of Cheyenne, WY.
Initial capacity of the line is 260 MDth/d or 273 MMcf/d.Wyoming Interstate filed an application for approval to expandcapacity to 380 MDth/d (400 MMcf/d) by the fourth quarter of 2000.WIC also is laying the groundwork for a third expansion to furthermeet its contractual commitments with producers tapping into theprolific coal-bed methane (CBM) reserves in the Powder River Basin.
The CBM producers “have signed on for increasing contractamounts over a period of four years,” said CIG spokesman RobertStovall.The $12 million expansion would add 7,170 hp compressionand 5.6 miles of 24-inch pipeline. with a targeted in-service dateof Oct. 1.
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