PG&E Gas Transmission Northwest Corp. got the thumbs-up from FERC yesterday to expand the capacity of its system in the Pacific Northwest by 210,800 Dth/d on an annual firm basis.

The pipeline plans to construct 20.7 miles of 42-inch diameter pipe parallel to its existing mainlines, which extend from Kingsgate, BC, southward 612 miles to Malin, OR. It also intends to add 97,500 horsepower at five existing compressor stations.

The expansion “should permit additional Western Canada Sedimentary Basin gas reserves to reach markets in California and the Pacific Northwest, markets which presently evidence a need for additional energy supplies,” the Commission said in approving PG&E Transmission’s certificate [CP01-141].

The proposed capacity has been entirely subscribed by two shippers under long-term contracts. The shippers include New Port Northwest LLC for 175,000 Dth/d of annual capacity for a 52-year term; and Calpine Energy Services for 35,800 Dth/d of annual capacity and 20,380 of winter-only capacity under a 40-year agreement.

“These service agreements are with customers that intend to use [the] expansion gas volumes to fuel electric generation facilities, which should make additional megawatts available to regions where electric demand cannot be reliably fulfilled by the existing sources of electric supply,” the order noted.

The Commission gave PG&E Transmission the go-ahead to roll in the costs of its $121 million expansion, which the pipeline estimates will increase its cost of service by $20.5 million.

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