By the OGJ Online Staff
HOUSTON, July 3 -- Williams completed construction of expanded facilities on its Kern River natural gas pipeline, adding 135,000 dekatherms/day of capacity into the California market.
Kirk Morgan, director of business development for the pipeline, said Williams applied to the Federal Energy Regulatory Commission Mar. 15 for the expansion and received approval within 3 weeks.
"This allowed us to expedite the construction process and bring additional supplies of natural gas to the California market. We anticipate most of the new natural gas will go directly to power generation facilities."
The project added two compressor stations in Utah and one in California, as well as upgraded compression at stations in Wyoming, Utah, and Nevada. The work increased capacity on the line 19%.
Separately, Williams Energy Partners LP completed the purchase of two petroleum distribution facilities in Little Rock, Ark., from Denver-based TransMontaigne Inc. for $29 million.
Phil Wright, president of Williams Energy Partners LP, said, "This is the second transaction we've completed since our initial public offering in February. It follows our agreement to provide jet fuel delivery services into Dallas Love Field for Southwest Airlines."
Including the Little Rock assets, Williams Energy Partners operates 26 inland terminals between Dallas, Tex., and Richmond, Va., 4 marine terminals, and an ammonia pipeline system.
The Little Rock sites primarily handle gasoline and diesel fuel. They have 452,000 bbl of storage and can be connected to the partnership's marine terminal at Galena Park, Tex., via third-party pipelines.