FERC Monday issued a certificate to Questar Overthrust Pipeline Co. for a mostly compression expansion to move additional natural gas from its system to Rockies Express Pipeline (REX) in Wyoming.
Overthrust proposes to add a compressor station at Point of Rocks in Sweetwater County, WY, and install more compression at its existing Rock Springs Compressor Station, also in Sweetwater County, as well as build short pipeline and associated facilities.
The proposed expansion would add approximately 32,000 hp of compression, creating an additional 300,000 Dth/d of capacity that is needed to move gas from receipt points on the northwest end of Overthrust’s system at the Opal Hub in Wyoming to an interconnect with REX on the east end of Overthrust’s system at Wamsutter, WY. Overthrust currently has the capability to deliver 625,000 Dth/d to REX, a spokesman said.
Overthrust estimates the total cost of the compression expansion as $42 million. It said it has entered into a firm transportation service agreement with EnCana Marketing (USA) Inc. for the entire expansion capacity with a 10-year term.
Overthrust owns and operates approximately 212 miles of pipeline extending from the Whitney Canyon producing area in Uinta County in southwest Wyoming to an interconnect with REX near Wamsutter, according to the FERC order.
In early 2008 Overthrust’s Wamsutter expansion, which made Overthrust the westernmost segment of the REX system, went into operation (see Daily GPI, Jan. 2, 2008). The expansion (77.2 miles of 36-inch diameter pipeline and two new compressor stations) extends from the eastern terminus of Overthrust’s transmission system to a REX interconnect at Wamsutter Hub in Sweetwater County.
“Although not explicitly requested by Overthrust, a predetermination that Overthrust shall roll the costs of the expansion project into the existing Wamsutter reservation rates is warranted absent a significant change in circumstance, since the projected revenues from the compression facilities will exceed projected costs,” the FERC order said [CP09-76].
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