A unit of Williams Cos. Inc., Tulsa, soon will begin construction on an $87 million gathering and treating system to serve coalbed methane producers in the San Juan basin of Colorado and New Mexico.
Williams Field Services Co.'s Manzanares system will consist of 110 miles of 6-22 in. pipeline, 45,000 hp of compression, and a 360 MMcfd amine treating plant.
First service is expected by early December, with completion scheduled for spring 1991.
Williams said the system will help meet strong demand for gathering and treating coal seam gas, which must be handled separately from conventional natural gas because of its high carbon dioxide content.
The company estimated that more than 1,000 coal seam gas wells will be drilled in the San Juan basin this year.
Williams signed contracts with two undisclosed coal seam gas producers for service through the system and will deliver their coal seam gas into the interstate gas pipeline network near the Blanco, N.M., hub.
The interconnection will help shippers avoid multiple transport fees by providing a direct link to El Paso Natural Gas Co. and Gas Co. of New Mexico.
Those advantages are complemented by the planned system expansions of Transwestern Pipeline Co. and Northwest Pipeline Corp. (OGJ, Feb. 26, p. 38).
Consequently, producers soon will have the flexibility to market gas through the Blanco hub to customers in California, the Gulf Coast, Midcontinent, and Pacific Northwest region, a Williams spokesman pointed out.
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