By OGJ editors
HOUSTON, Aug. 17 -- Kinder Morgan Energy Partners LP, Houston, and Sempra Pipelines & Storage, a unit of Sempra Energy, San Diego, have proposed a $3 billion gas pipeline linking Rocky Mountain production with the US Midwest and East.
The companies signed a memorandum of understanding (MOU) outlining feasibility studies of the joint development of a 42-in. pipeline with capacity of up to 2 bcfd. It would be staged into service, tentatively beginning in late 2008.
Subject to shipper interest, the 1,500-mile pipeline would originate at the Wamsutter Hub in Wyoming and extend to eastern Ohio. Initially, KMP would own two thirds of the equity in the pipeline, and Sempra would own one-third.
Under the MOU, Sempra agreed to bid for 200 MMcfd of firm capacity from the pipeline during an upcoming open season. Sempra said it would use the capacity to serve East Coast customers.