Williston Basin Interstate Pipeline Co. announced Thursday its intent to file for federal approval to construct 245 miles of 16-inch natural gas pipeline spanning sections of Wyoming, Montana and North Dakota, tapping the rapidly developing Powder River Basin.

The Williston project joins the Rimrock and Bison pipelines, both greenfield projects proposed in the same area. Plans for the Rimrock Pipeline, to be built by Michigan-based Everest Energy and Major Pipeline Co., were announced just the day before (see Daily GPI, Sept. 27).

Williston’s pipeline, expected to begin approximately 14 miles north of Gillette, WY, and end south of Killdeer, ND, initially would be capable of transporting from 80 to 120 MMcf/d. “Additional pipeline transportation capacity could be added incrementally as natural gas production grows in the coalbed and other conventional fields in Wyoming and Montana, ultimately increasing … volumes on this pipeline to as much as 200 MMcf/d,” said Tony Finneman, executive vice president of Williston Basin.

“In essence, we’re looking to construct a `just-in-time’ pipeline for the amount of natural gas being produced in the Powder River Basin, and we’ll add capacity in step with increases in production,” said Finneman, who announced the project Thursday during the Fifth Annual Wyoming Natural Gas Fair in Jackson Hole. Initially, the pipeline is expected to feature three large compressor stations – one on the south end of the route in Wyoming, another in eastern Montana and the third in North Dakota. Additional transportation capacity through the pipeline can be made available by adding more compression facilities.

The pipeline to be constructed by Williston Basin, an indirect subsidiary of MDU Resources Group, based in Bismarck, ND, would transport natural gas from developing coalbed and conventional natural gas production in central Wyoming and south central Montana to interconnecting pipelines that will transport it to large Midwestern markets. “The pipeline would also enhance access to our large natural gas storage facilities in eastern Montana,” Finneman said.

Williston Basin already has a number of customers signed up and will be filing the project with the Federal Energy Regulatory Commission in October. The selection of the pipeline’s route is nearly complete and initial surveying work has begun. With FERC approval, construction could begin as early as the third quarter of 2002, with transportation service slated to begin in late 2002.

Rimrock, an intrastate line confined to the state of Wyoming, has been proposed in two stages: Phase I, expected to be in service by December, would carry 150 MMcf/d; Phase II, to begin construction next summer, would boost throughput to 300-350 MMcf/d.

Northern Border Pipeline is expected to conduct another open season in the next few months for its Bison Pipeline, which is targeted for completion by the end of 2003. All three pipelines have one terminus near Gillette, WY, but would branch off in different directions.

©Copyright 2001 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.