Transwestern Pipeline Co. said Thursday it has requested FERC authorization to begin the pre-filing process on a proposed expansion project designed to deliver gas to the Phoenix, AZ, area, which currently is served only by competitor El Paso Natural Gas. Transwestern said it plans to make a certificate filing for the 500 MMcf/d expansion project next summer.

The Phoenix Expansion Project would extend Transwestern’s pipeline system 260 miles from its mainline in Yavapai County, AZ, to delivery points in the growing Phoenix market. As part of the overall project, Transwestern also proposes to build 25 miles of pipeline looping on its existing San Juan Lateral. It estimates the expansion will be in service by early 2008.

The project would provide Arizona utilities with access to more San Juan Basin gas production and would give Transwestern’s existing shippers, many of whom are marketers and producers, with access to additional markets for natural gas.

“The southern Arizona markets are asking for additional pipeline infrastructure to bring additional San Juan natural gas production into the region,” said Shelley Corman, Transwestern’s senior vice president. “An open season earlier this year showed that Transwestern’s customers want additional pipeline capacity to transport more of the competitively priced San Juan natural gas supplies to markets downstream of the company’s San Juan Lateral.”

The Phoenix expansion previously was called the Sun Devil Lateral. Transwestern has been planning it for more than a year (see Daily GPI, May 24, 2004; May 2, 2005). The project was previously expected to cost $245-250 million.

Transwestern, a Southern Union company subsidiary, extends 2,400 miles from the San Juan, Anadarko and Permian basins to the California border.

©Copyright 2005Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.