By OGJ editors
HOUSTON, May 21--TransCanada Corp., affiliates of Enterprise Products Partners LP, and Quicksilver Gas Services LP have signed a memorandum of understanding regarding the proposed 915-mile Pathfinder natural gas pipeline project OGJ, (Apr. 18, 2008, Newsletter).
Enterprise and Quicksilver would acquire as much as an aggregate 50% ownership in the proposed project and commit to ship 500 MMcfd of gas for a 10-year term.
Enterprise and Quicksilver would own as much as 40% and 10%, respectively, of the pipeline and anticipate forming a new entity which would contract for the 500 MMcfd shipping position. Enterprise will own 80% of this new entity, and Quicksilver will own the remaining 20%. TransCanada will continue to be responsible for developing, constructing, and operating the pipeline.
The first phase of the pipeline, to be in service by late 2010, would transport gas from Meeker, Colo. through Wamsutter, Wyo., to the Northern Border pipeline. The initial capacity will be 1.2 bcfd.
The second phase, extending the pipeline to Emerson where gas can be shipped to eastern markets or storage facilities using the Great Lakes gas transmission system and TransCanada's Canadian mainline system, could be in service as early as fourth-quarter 2011.