Questar Pipeline said last week it plans to build severalextensions on the converted Southern Trails Pipeline (formerlyARCO’s Line 90) to provide greater access to San Juan Basin andRocky Mountain region supplies and to create a link to El Paso,Transwestern and others at the California border. The company alsois planning a short extension to several Long Beach, CA,refineries. Questar completed the $38 million purchase of the linefrom ARCO Pipe Line Co. last week.
The 16-inch-diameter line runs 700 miles between northwesternNew Mexico’s Paradox Basin and Long Beach. The pipe was constructedin 1957 to transport oil to Los Angeles, but Questar will file inJanuary for FERC approval to convert the line to transport gas.Upon completion, the pipeline’s capacity will be 120-130 MMcf/d.
Lynn Arnold, Questar’s senior marketing representative, said thecompany expected to receive gas at El Paso’s Chaco plant in the SanJuan Basin but now also plans to extend the line to the Blanco Huband add a connection with TransColorado Pipeline, in which it is apart owner with KN Energy. Questar also is planning a 20-mileextension to Topock, AZ, near the California border, where it couldinterconnect with Transwestern, El Paso and possibly Southwest Gasand other transporters and distributors. The connections at Topockwill provide increased supply access west of the California border.The west end of the line is expected to have about 40 MMcf/d moretransportation capacity than the east end, 120 MMcf/d compared to80 MMcf/d, respectively.
Arnold said the open season, which ended in October, was “verysuccessful” and the company expects to complete negotiations withcustomers in the next few weeks. She said most of the shippersprobably will be marketers. A few will be end-use customers.Questar plans to file negotiated rates with contract terms greaterthan five years.
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