Compression

In order provide Georgia customers with liquefied natural gas-sourced gas, Southern Natural Gas pipeline has asked FERC for authorization to sell pipeline, proposed compression and associated facilities to Magnolia Enterprise Holdings Inc., a subsidiary of Atlanta-based AGL Resources Inc., for an estimated $20.3 million.

Gas-weighted Rockies producers such as Bill Barrett Corp., Questar Corp., Ultra Petroleum and The Williams Companies face margin compression in the near term while they wait for the next increments of the Rockies Express pipeline to come online at the beginning of 2008 and mid-2009, according to Raymond James & Associates Inc.

Gas-weighted Rockies producers such as Bill Barrett Corp., Questar Corp., Ultra Petroleum and The Williams Companies face margin compression in the near term while they wait for the next increments of the Rockies Express pipeline to come online at the beginning of 2008 and mid-2009, according to Raymond James & Associates Inc.

CenterPoint Energy Gas Transmission Co. (CEGT), an indirect subsidiary of CenterPoint Energy Inc., has contracted to construct compression and pipeline facilities to serve a new power plant with up to 480 MW of capacity being built by Southwestern Electric Power Co. (SWEPCO), a subsidiary of American Electric Power, in Washington County, AR. The CEGT facilities will be constructed in eastern Oklahoma and northwest Arkansas. SWEPCO is constructing two simple-cycle natural gas-fired combustion turbines, with a combined capacity of 170 MW and scheduled for completion in July. Another two combustion turbines, with a combined capacity of 170 MW, are scheduled for completion in December. The facilities required to meet the demand will be built in two phases. Phase I, expected to be in service in the third quarter, will consist of 2,300 feet of 12-inch diameter pipe and a delivery meter station at the power plant. Phase II activities include the addition of a 15,000-hp mainline compressor station near Poteau, OK, along with 15.5 miles of 24-inch diameter pipeline looping of CEGT’s Line OM-1. CEGT expects to file an application for Phase II with the Federal Energy Regulatory Commission and anticipates an in-service date in the second quarter of 2009. Terms of the contracts are confidential.

CenterPoint Energy Gas Transmission Co. (CEGT), an indirect subsidiary of CenterPoint Energy Inc., has contracted to construct compression and pipeline facilities to serve a new power plant with up to 480 MW of capacity being built by Southwestern Electric Power Co. (SWEPCO), a subsidiary of American Electric Power, in Washington County, AR. The CEGT facilities will be constructed in eastern Oklahoma and northwest Arkansas. SWEPCO is constructing two simple-cycle natural gas-fired combustion turbines, with a combined capacity of 170 MW and scheduled for completion in July. Another two combustion turbines, with a combined capacity of 170 MW, are scheduled for completion in December. The facilities required to meet the demand will be built in two phases. Phase I, expected to be in service in the third quarter, will consist of 2,300 feet of 12-inch diameter pipe and a delivery meter station at the power plant. Phase II activities include the addition of a 15,000-hp mainline compressor station near Poteau, OK, along with 15.5 miles of 24-inch diameter pipeline looping of CEGT’s Line OM-1. CEGT expects to file an application for Phase II with the Federal Energy Regulatory Commission and anticipates an in-service date in the second quarter of 2009. Terms of the contracts are confidential.

FERC has approved Wyoming Interstate Co. Ltd.’s (WIC) application to build a major supply lateral and mainline compression facilities to satisfy the growing demand for take-away capacity in the Uintah Basin in Utah.

FERC has approved Wyoming Interstate Co. Ltd.’s (WIC) application to build a major supply lateral and mainline compression facilities to satisfy the growing demand for take-away capacity in the Uintah Basin in Utah.

Alliance Pipeline Ltd. filed an application with Canada’s National Energy Board to construct compression and ancillary facilities at its existing Taylor Junction valve site, approximately 6 kilometers (3.7 miles) northeast of Taylor, BC, within the Peace River Regional District. The proposed expansion would enhance capacity for gas receipts originating in northeastern BC. Construction of the facilities would enable an increase in gas receipt capacity on Alliance’s BC lateral system. Alliance will not increase the mainline capacity of its system with this project, only the ability for existing shippers to increase gas nominations at receipt points in BC. The additional capacity was made available to existing Alliance shippers through a binding open season in October, and Alliance has entered into contracts with the interested shippers. Subject to regulatory approval, site foundations will be poured in Fall 2007 and the major construction activities would occur during 2008. Start-up is scheduled for November 2008.

Alliance Pipeline Ltd. filed an application with Canada’s National Energy Board to construct compression and ancillary facilities at its existing Taylor Junction valve site, approximately 6 kilometers (3.7 miles) northeast of Taylor, BC, within the Peace River Regional District. The proposed expansion would enhance capacity for gas receipts originating in northeastern BC. Construction of the facilities would enable an increase in gas receipt capacity on Alliance’s BC lateral system. Alliance will not increase the mainline capacity of its system with this project, only the ability for existing shippers to increase gas nominations at receipt points in BC. The additional capacity was made available to existing Alliance shippers through a binding open season in October (see Daily GPI, Oct. 6, 2006), and Alliance has entered into contracts with the interested shippers. Subject to regulatory approval, site foundations will be poured in Fall 2007 and the major construction activities would occur during 2008. Start-up is scheduled for November 2008.