By OGJ editors
HOUSTON, Feb. 22 -- Kinder Morgan Energy Partners Natural Gas Pipelines (KMP), operator of the proposed 1,663-mile Rockies Express Pipeline (REP) natural gas system, has initiated service on a 192-mile, 42-in. pipeline section from the Wamsutter Hub in Wyoming to the Cheyenne Hub in Colorado.
The pipeline is the second section completed on the Western leg of the $4.4 billion system. REP will transport as much as 1.8 bcfd of gas from prolific Wyoming and Colorado basins to upper Midwest and eastern US markets. The owners have received binding firm commitments from shippers for almost all of the pipeline's capacity.
The first segment—136 miles of 36-in. pipeline from the Meeker Hub in Colorado to the Wamsutter Hub—began interim service in February 2006. Capacity on the combined 328-mile first two segments is 500 MMcfd. That capacity will increase to as much as 750 MMcfd when the Enterprise Gas Processing LLC plant at Meeker goes into service later this year.
KMP Pres. Scott Parker said he expects to receive Federal Energy Regulatory Commission approval this spring for the final 713-mile, 42-in. western leg of REP from Weld County, Colo., to Audrain County, Mo. Construction is expected to begin shortly thereafter and, subject to regulatory approvals, REP-West will be in service in December.
REP-East, a 622-mile segment from eastern Missouri to the Clarington Hub in Ohio is expected to be in interim service as early as Jan. 1, 2009, and fully completed by June 2009.
KMP owns 51% equity in the project, which will become 50% when construction of the entire project is completed. ConocoPhillips owns 24%, with an additional 1% interest to be acquired after the pipeline is completed. Sempra Energy unit Sempra Pipelines & Storage holds the remaining 25%.