By OGJ editors
HOUSTON, Aug. 28 -- Questar Pipeline Co., Salt Lake City, and an affiliate of Enterprise Products Partners LP, Houston, signed a memorandum of understanding to build a 2.5 bcfd natural gas pipeline hub in the Rocky Mountain area. Questar will construct and operate the 7-mile, 30-in. hub pipeline.
The White River Hub, a header system to be owned equally by the two companies, will connect Enterprise's gas processing complex near Meeker, Colo., with as many as six interstate pipelines in the Piceance basin area, including Questar's.
The pipeline, from Questar Pipeline's Greasewood, Colo., facilities to the nearby Enterprise Meeker gas processing complex, would provide hub-related services for area gas producers, marketers, and buyers.
Other pipelines expected to connect to the White River Hub are the Rockies Express Pipeline, owned by Kinder Morgan, Sempra, and ConocoPhillips; Kinder Morgan's TransColorado Gas Transmission Co.; El Paso's Wyoming Interstate Co. and Colorado Interstate Gas Co.; and the Williams-owned Northwest Pipeline Corp. The system would allow shippers on these pipelines to access markets throughout the country.
As foundation shippers, Enterprise has committed to 1.5 bcfd of firm capacity on the pipeline and Questar to 0.5 bcfd. An open season will be held immediately for the remaining firm capacity.
Assuming receipt of regulatory approvals and a successful open season, the companies expect pipeline construction to start in mid-2008 and for gas transmission to begin in fall 2008.