Phoenix, AZ, appears to be a popular destination for new natural gas deliveries as both Transwestern Pipeline and El Paso Natural Gas are working on delivering new supplies from their mainlines into the area.

El Paso recently completed a “successful open season” for a 500 MMcf/d expansion for its Line 1903 into the Phoenix area, according to Tom Price, Colorado Interstate Gas’ vice president of marketing.

And Transwestern recently took its Sun Devil Later project “out of the closet” and dusted it off, according to Mark McConnell, account director for Transwestern. McConnell advertised the Transwestern project, which was originally announced in 2001, as “giving captive customers a choice” and bringing gas on gas competition into the Phoenix area. Both McConnell and Price discussed their proposed pipeline additions at GasMart 2004 last week in Denver.

Transwestern announced an open season earlier this month for the 500 MMcf/d Sun Devil Lateral, a 175 mile, 36-inch pipe (no initial compression) running south from the Transwestern mainline in Yavapai County, AZ. Customers could match capacity on the lateral with currently unsubscribed mainline capacity and capacity in its San Juan Expansion 2005 project. The open season runs to June 25.

The Sun Devil line is estimated to cost $245-250 million and would take about 18 months to complete from the time of shipper commitments. Transwestern is proposing a $0.1950 reservation rate for a 15 year term. Notice of the open season was posted on Transwestern’s Hottap bulletin board May 11 under Non-Critical Notices.

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