FERC Wednesday approved Questar Pipeline Co.’s application to build the ML 41 Project on its transmission system in order to provide high-pressure deliveries of natural gas for an expansion of a PacificCorp-owned and operated power generation plant in Utah.
The proposed modifications of Questar’s southern transmission system would provide higher delivery pressures for the expansion of the Lake Side 2 electric power generating plant in Vineyard, UT. The plant is located behind Questar’s Payson Gate meter station, which serves Questar’s local distribution company (LDC) affiliate, Questar Gas [CP12-524].
The project will increase pressure on ML 41 to allow high-pressure deliveries at Payson Gate for the downstream Lake Side 2 power plant. In order to provide PacifiCorp with the necessary pressure to operate the Lake Side 2 power plant, Questar must deliver gas to its LDC affiliate at the Payson Gas meter station at a minimum pressure of 700 psig.
In anticipation of providing additional gas service for the Lake Side 2 power plant, Questar posted a notice on its electronic bulletin board in late 2011 of its intent to reserve 47,625 Dth/d of unsubscribed capacity for a future expansion, as well as its expectation that 42,375 Dth/d of capacity would become available from future expiring contracts.
PacifiCorp signed a precedent agreement for the entire available firm transportation of 90,000 Dth/d on Questar’s mainline for a 30-year term.
The project calls for Questar to build a 4,700 hp compressor package at its existing Thistle Creek Station in Utah County, UT; replace approximately 0.9 miles of existing 18-inch diameter ML 41 pipeline in Utah Country with a maximum allowable pressure (MAOP) of 663 psig with 18-inch pipeline having a MAOP of 824 psig; upgrade metering facilities at Questar’s existing Payson Gate meter station in Utah County; and make piping and meter modifications at Questar’s existing Oak Spring Compressor Station in Carbon County, UT. Questar estimates that it will cost nearly $20 million to build.
The Federal Energy Regulatory Commission (FERC) approved Questar’s request for a pre-determination of rolled-in rate treatment for the costs association with the project. FERC has given the company a year to construct the facilities and have them in service.
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