Construction

This Wednesday’s FERC meeting promises to be a blockbuster. Forone, the Commission has placed the hotly contestedSupplyLink-Independence Pipeline-MarketLink projects on the agenda,essentially thumbing its nose at New Jersey Gov. Christine ToddWhitman’s request for at least a 60-day delay [CP97-319, CP97-315,CP98-540].

While it won’t get there for a while, gas is on its way toWarren County, NC. Frontier Energy, a subsidiary of Sempra Energy,this week is beginning construction of its planned Warren Countydistribution system and touted gas’ role in the area’s economicrevitalization. The Warren County pipeline is part of a $55 milliondistribution system being built by Frontier to serve residents andbusinesses in seven northwestern North Carolina counties.

Frontier Energy, a subsidiary of Sempra Energy, beganconstruction of a distribution system in Warren County, NC, wherefirst-time gas service is expected to play a significant role inthe county’s economic revitalization, the company said. The WarrenCounty pipeline is part of a $55 million distribution system beingbuilt by Frontier to serve residents and businesses in sevennorthwestern North Carolina counties.

The City of New York said it’s prepared to go to court toprevent the construction of the Millennium Pipeline project alongproposed routes that would pose a threat to its water supply.

Activity continues to pour from the Powder River Basin, as CMSContinental Natural Gas, a CMS Energy subsidiary, named OkemahConstruction Inc. as the winning bidder to build the NorthernHeader Gas Gathering System. CMS Continental will be the operatorof the new header, which will help increase the accessibility ofthe basin’s coal bed methane gas to main market points. The costwas not disclosed. CMS said the gathering system will beoperational November 1.

Leviathan Gas Pipeline Partners LP contracted with MODECInternational LLC for construction of the hull for a floatingplatform to be used as part of its Sunday Silence field developmentproject in Gulf of Mexico Ewing Bank Blocks 958, 959, 1002 and 1003in 1,500 feet of water. MODEC International, which is owned by FMCCorp. and Mitsui Engineering & Shipbuilding, was selected byLeviathan after reviewing four competitive bids.

Construction is scheduled to begin this month on the PacificNorthwest’s first merchant power plant, a natural gas-fired 500 MWplant in the southern Oregon city of Klamath Falls just north ofthe California border and east of the Cascade Mountains. Commercialstart-up is scheduled for July 2001. The City of Klamath Falls,using $300 million tax-exempt public revenue bonds, will own theplant. PacifiCorp Power Marketing will build, manage, operate andfuel the plant. And PG&E Gas Transmission/NW will transport gasthrough an enlarged portion of its 80-mile, east-to-west MedfordLateral off its main north-to-south interstate pipeline thatcarries Canadian supplies to markets in California as well as thePacific Northwest. The plant is expected to need about 9 MMcf/d forits peak output. The City of Klamath Falls will use half of theplant’s electricity generation to operate municipal facilities, andPacifiCorp will market the remaining power, mostly to surroundingprivate- and public-sector utilities.

Sempra Energy International said it began construction on a23-mile, $35 million pipeline running from California to Mexicolast week, adding to the already-extensive activity the company isinvolved in south of the border. The 300 MMcf/d pipeline isscheduled to begin service to the Presidente Juarez power stationat Rosarito, Baja California by December.

As construction begins on Alliance Pipeline, Canadiannatural-gas producers are mounting aggressive northern drillingcampaigns to fill up the added export capacity when it goes intoservice in October of 2000. Northeastern British Columbia, thestarting point for Alliance’s 2,320-mile route to Chicago, hasemerged as an E&ampP hot spot.