Transwestern Pipeline has filed an application with FERC to expand its San Juan Basin pipeline lateral by about 375 MMcf/d (a 44% increase) to accommodate new gas production from the San Juan Basin in New Mexico and other producing areas in the northern Rockies.

The $138.4 million supply-driven project entails modifications at existing compressor stations and constructing 72.6 miles of underground pipeline from the Blanco Hub in San Juan County, NM, to the point of interconnection with Transwestern’s mainline.

“Today, energy producers are tapping new gas reserves in the Rockies and San Juan Basin to feed America’s demand for natural gas,” said Shelley Corman, senior vice president for Transwestern. “Because the existing pipelines are full, new pipeline capacity is required to bring this additional gas to market. Transwestern’s existing infrastructure enables us to expand our system timely and efficiently to meet the growing energy needs of our customers.”

Transwestern’s application is supported by multi-year firm service agreements with BP, ConocoPhillips, Burlington Resources and Red Willow Production. Transwestern said the production supporting the project will be a mix of conventional supply and coalbed methane from the basin and the northern Rockies. The expansion also will produce some excess capacity that could be sold in the future.

Transwestern anticipates that construction of the San Juan Expansion will begin in late 2004 with a projected in service date of mid 2005. Transwestern owns and operates 2,600 miles of interstate gas transmission lines, which extend from West Texas, Oklahoma and Colorado through New Mexico and Arizona to the California border.

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