U.S. EAST-WEST GAS PROJECTS ADVANCING

April 9, 1990
Proposed pipelines to transport U.S. and Canadian gas to California are moving closer to start-up. Mojave Pipeline Co. is commencing right-of-way acquisition for its 385 mile, 30 in. and 42 in. pipeline from Topock, Ariz., to Kern County, Calif., in spite of a court challenge by the California Public Utilities Commission. Mojave hopes to start construction of the 400 MMcfd system in January 1991 after receiving remaining environmental clearances and place the line in service in early 1992. It

Proposed pipelines to transport U.S. and Canadian gas to California are moving closer to start-up.

Mojave Pipeline Co. is commencing right-of-way acquisition for its 385 mile, 30 in. and 42 in. pipeline from Topock, Ariz., to Kern County, Calif., in spite of a court challenge by the California Public Utilities Commission.

Mojave hopes to start construction of the 400 MMcfd system in January 1991 after receiving remaining environmental clearances and place the line in service in early 1992. It has ordered 150,000 tons of pipe.

CPUC has said Mojave fails to meet the commission's standards for new pipeline capacity into California. Mojave, an interstate system, will be under jurisdiction of the Federal Energy Regulatory Commission, not CPUC.

Mojave said it expects the CPUC suit to be decided in the company's favor.

WHAT ELSE IS HAPPENING

Meanwhile, Kern River Gas Transmission Co., whose Opal, Wyo., to Kern County system will join with Mojave's near Barstow, Calif., ordered pipe from two U.S. suppliers. Deliveries are to begin in late November.

Kern River ordered 512 miles of 36 in. pipe from Napa Pipe Corp., Napa, Calif., and 190 miles of 36 in. pipe from Steelton Rail Products & Pipe Division, Steelton, Pa.

Coastal Corp.'s proposed Wyoming-California Pipeline Co. project survived a challenge in District of Columbia court of appeals by CPUC, Kern River, and Mojave.

The ruling affirms the optional certificate that FERC issued Wycal (OGJ, Feb. 5, p. 29).

Wycal is holding an open season through May 11 for shippers desiring firm or interruptible transportation on its Wyoming to California system.

WyCal's schedule calls for construction to start this fall and service to begin in late 1991.

Pacific Gas Transmission Co. filed for an open access transportation blanket certificate under FERC Order 500.

The filing is the first step toward operation of capacity brokering on PGT's 900 MMcfd natural gas system expansion from western Canada to California and the Pacific Northwest (OGJ, Mar. 5, p. 27).

Meanwhile, San Diego Gas & Electric Co. signed with Husky Oil Operations Ltd. the first of several agreements the utility plans with Canadian suppliers, subject to U.S. and Canadian regulatory approvals.

SDG&E's letter of intent calls for it to buy 20 MMcfd from Husky for 7 years. It contains a 10 year extension option.

The utility, one of 20 shippers to commit for 755 MMcfd of capacity on the expanded PGT line, has reserved 100 MMcfd of capacity.

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