By OGJ editors
HOUSTON, May 15 -- TEPPCO Partners LP reported it is planning to add 80 miles of pipeline loop on its mainline from Green River basin fields to Opal, Wyo., and on the Jonah gas gathering system in Pinedale and Jonah fields in southwestern Wyoming.
The $65 million Phase III expansion also calls for addition of 3,200 hp of compression to the system and construction of a new 250 MMcfd "Pioneer" gas processing plant near Opal to accommodate increased gas production from the two fields .
Residue gas from the new plant can be delivered to Kern River and Northwest interstate pipelines, TEPPCO said.
TEPPCO expects the expansion to contribute operating income exceeding $12 million during the first full year of operation. Upon its completion in the fourth quarter of this year, total system capacity will be 1.1 bcfd, with volumes in 2004 also expected to exceed 1 bcfd.
Duke Energy Field Services LP is operator of the Jonah system. Texas Eastern Products Pipeline Company LLC, a Duke Energy subsidiary, is the general partner of TEPPCO.
Area producers—BP America Production Co., EnCana Oil & Gas (USA) Inc. and Shell Exploration & Production Co. affiliates—are supporting the expansion with increased dedications through 2013.