Gas transportation activity in the U.S. West continues to heat.
Three companies have teamed up to lay a $100 million, 300 mile pipeline in Colorado to move Rocky Mountain gas to California and Midwest markets.
The venture, TransColorado Gas Transmission, plans to lay the line from the Piceance basin northeast of Grand Junction, Colo., to Ignacio in Southwest Colorado.
The line would connect with existing interstate lines from Texas to southern California and the Midwest.
The TransColorado system would transport 250-300 MMcfd of gas from western Colorado and other basins in Wyoming and Utah.
Meanwhile, an Enron Corp. unit signed agreements to supply Southern California Gas Co. with initial volumes of as much as 200 MMcfd of gas under 5-10 year contracts.
In addition, Kern River Gas Transmission Co. signed a firm contract with Mobil Natural Gas Inc. to transport 85 MMcfd of gas on its proposed Wyoming-California pipeline to Kern County, Calif.
Mobil also signed an agreement with Mojave Pipeline Co. for firm transportation of 20 MMcfd of gas for 15 years to Kern County.
QUESTAR JOINS PROJECT
The TransColorado project advanced when Questar Corp.'s Questar Pipeline Co., Salt Lake City, joined the project this month.
KN Energy Inc.'s Rocky Mountain Natural Gas Co., Lakewood, Colo., and Public Service Co. of Colorado's Western Gas Supply Co., Denver, formed the TransColorado joint venture last year to establish intrastate transportation for gas produced in western Colorado as early as late 1990 (OGJ, Nov. 6, 1989, p. 20).
The venture was to use new and existing facilities of Rocky Mountain Natural and Public Service. Both companies operate intrastate systems in Colorado.
Questar will provide financial support, added access to gas producing basins in Colorado and elsewhere in the Rocky Mountain region, as well as interconnections with other major interstate systems.
Questar operates a 2,400 mile gas transmission and storage system in Colorado, Wyoming, and Utah.
Questar also plans to lay a $19 million, 81 mile, 20 in. gas line in Daggett and Uintah counties, Utah, to connect its northern and southern transmission systems this year (OGJ, Feb. 5, p. 17).
Originally planned as a 20 in. line, the TransColorado project could be expanded later. TransColorado would link with El Paso via a spur of about 10 miles in length in the Durango, Colo., area. Most of the system will consist of new pipe.
TransColorado is seeking permits for its project and hopes to begin construction by yearend. The venture expects to have gas flowing in the line by mid-1991.
TransColorado has letters of intent to ship gas but did not specify tentative volumes or prospective customers.
"Producers throughout our region have expressed strong support for developing alternatives for transporting their gas to California and other growing markets," said Questar Pipeline Pres. A.J. Marushack.
ENRON-SOCALGAS
Enron Gas Marketing Inc.'s (EGM's) pact with SoCalGas sets what it hopes will be the standard for future long term contracts.
EGM has supplied SoCalGas spot and intermediate supplies in the past.
"It is an innovative supply package made up of indexed and fixed gas prices that will augment the monthly spot sales that EGM will continue to offer SoCalGas," said EGM Pres. John Esslinger.
SoCalGas said the new contracts represent secure supplies covered under its long term core program established in May 1989.
Enron also is the parent of Transwestern Pipeline Co., one of two major interstate trunk lines - El Paso is the other - moving Midcontinent and Southwest gas to southern California.
KERN RIVER CONTRACT
The contract with Mobil boosted total supplies covered under Kern River's firm, long term, transportation contracts to 605 MMcfd.
Kern River earlier this month signed firm transportation contracts for 150 MMcfd of Canadian gas volumes, hiking total volume enough to ensure the line's financing (OGJ, Feb. 19, p. 24).
The Mobil contract also brings to five the number of producers that will move gas through Kern River for use in thermal enhanced oil recovery operations in California's San Joaquin Valley.
Kern River, a 36 in., 904 mile, 700 MMcfd initial capacity system from Opal, Wyo., to Kern County, is one of a number of proposed interstate pipeline projects vying to serve California's growing gas demand (OGJ, Sept. 4, 1989, p. 21).
MOJAVE CONTRACT
Mojave's pact with Mobil brings it closer to the level where the project would be economic, said Mojave Pres. Michael Holland.
He said that 65% of Mojave's proposed initial capacity is subscribed under "high quality agreements" and that he expects a commitment of more than 80% within 90 days.
Mojave plans to construct and operate a 386 mile, 400 MMcfd initial capacity, interstate pipeline from the Arizona-California border to Kern County.
It will interconnect in Arizona with El Paso and Transwestern, which are partners in Mojave.
Mojave will merge with Kern River near Barstow, Calif., and then continue to Kern County as a single pipeline.
Holland noted that Mojave, through the El Paso and Enron systems, will have access to the biggest new source of gas-and closest new source to California-in North America, coalbed methane in the San Juan basin of New Mexico and Colorado.
Mojave on Jan. 24 received an optional expedited certificate from the Federal Energy Regulatory Commission for its portion of the joint line with Kern River.
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