NGI The Weekly Gas Market Report
The proposed Southern Trails Pipeline from the Paradox Basin ofNew Mexico to Long Beach, CA, could be delayed three to six monthsbecause of additional environmental assessment work underway aspart the federal and state regulatory processes, according to aSalt Lake City-based spokesperson for Questar Corp., which boughtthe pipeline for $40 million last year from ARCO. Nevertheless, theconverted 700-mile pipeline should be bringing 120 to 130 MMcf/d ofgas into California by the end of next year at the latest.
Budget, engineering and customer sign-ups are still on target,said Chad Jones, the Questar spokesperson, adding that his companyis “real close” to announcing its first customer contracts for theconverted pipeline, which initially was scheduled to open nextspring.
The old timetable assumed that environmental impact reportswould only cover portions of the converted oil pipeline where theexisting route and equipment are going to be altered. Instead,regulators have required a comprehensive environmental assessmentof the entire route as though a new pipeline was being built, Jonessaid. Therefore, startup could slip to the third or fourth quarterof 2000. Conversion activities, which are not expected to take along time, may be delayed. The work anticipated involves addingseven compression stations and making small modifications to the16-inch-diameter pipeline related to its carrying natural gas,compared to its historic use as a circa-1957 oil pipeline. Includedare former ARCO’s Lines 90, 91 and 92.
Questar already has struggled to meet regulatory deadlines. FERCwarned the company it may dismiss the project application if thecompany doesn’t come forward with requested data before the end of themonth (see Daily GPI Aug. 16). KevinP. Madden, director of FERC’s Office of Pipeline Regulation, saidQuestar initially had assured his staff it would submit theinformation – cultural resource surveys, erosion control andrevegetation plans and identify additional land requirements – byApril. Based on that commitment, FERC staff went ahead and noticed theapplication on March 16. But the deadline has long since passed andglaring deficiencies still remain. A Questar spokesman said thecompany would comply with FERC’s request.
The proposed pipeline, as envisioned by Questar, would serve asthe last leg of a planned three-part delivery chain (with Questarand TransColorado Gas Transmission as the other legs) that wouldbring cheaper Rocky Mountain gas supplies into the southernCalifornia market. TransColorado is a 50-50 partnership betweenQuestar and KN.
©Copyright 1999 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.
© 2020 Natural Gas Intelligence. All rights reserved.
ISSN © 1532-1231 | ISSN © 2577-9877 |