Salt

Utah regulators awarded Questar Gas an immediate increase in its general rates of slightly more than 3%, effective Dec. 30. The Salt Lake City, UT-based natural gas distribution company also had its allowed rate of return on equity raised to 11.2% from 11%.

The first two gas storage caverns at the Keystone Gas Storage Project near Kermit, TX are up and running, offering 2 Bcf of high deliverability salt cavern gas storage capacity, according to Unocal Keystone Gas Storage LLC. The project, which became operational in late August, has the capacity to inject 100 MMcf/d and to withdraw 200 MMcf/d.

Salt Lake City-based Questar Corp. said Wednesday that the $100 million, 410-mile eastern portion of its converted Southern Trails pipeline is expected to be free-flowing gas supplies by mid-June en route to being fully operation with 80 MMcf/d of compressed supplies flowing in the former oil pipeline by July 1. The pipeline stretches from the Four Corners area of New Mexico to the California border.

Salt Lake City-based Questar Corp. went out to bid earlier this month on four new compressors to complete its conversion work on the east-of-California portion of its 705-mile Southern Trails Pipeline from the San Juan Basin to the Long Beach port area of Southern California. The portion of the converted oil pipeline between the California border and the Four Corners Area in New Mexico will open June 1 next year, a Questar spokesman said.

Salt Lake City-based Questar Corp. went out to bid earlier this month on four new compressors to complete its conversion work on the east-of-California portion of its 705-mile Southern Trails Pipeline from the San Juan Basin to the Long Beach port area of Southern California. The portion of the converted oil pipeline between the California border and the Four Corners Area in New Mexico will open June 1 next year, a Questar spokesman said Monday.

Although not giving up its search for customers in California, Salt Lake City-based Questar Corp.’s oil-to-natural-gas converted pipeline from the Four Corners of New Mexico remains stymied in operating its portion within California under a newly revised “peaking tariff” for Southern California Gas Co., according to Questar officials who have been analyzing the new rate established Aug. 2 by state regulators (see Daily Gas Price Index, Aug. 3). Questar is looking at alternative uses for the California portion of the approved interstate pipeline.

El Paso Energy’s Petal Gas Storage said Friday it plans toproceed with the construction of a third salt cavern at itsexisting facilities in Mississippi based on the success of an openseason, which ended May 5. It noted it received service requests inexcess of the capacity proposed in the open season, and is now inthe process of evaluating the bids. The proposed expansion, ifapproved by FERC, would add 5 Bcf of working gas storage capacityto Petal’s existing storage facilities in Hattiesburg, MS, givingthe storage company a total of 15 Bcf of actual working gascapacity and 1.5 Bcf/d of withdrawal capacity.

Petal Gas Storage Co., a wholly-owned subsidiary of Crystal GasStorage Inc., filed its second application with FERC to add 3.6 Bcfof storage capacity to its Nos. 6 and 7 salt caverns in ForrestCounty, MS, last week. The first application, filed in July, wasdenied by FERC because it lacked detail.