Three proposed U.S. pipeline expansions have passed federal regulatory milestones in efforts to move a combined 3 bcfd of gas to West Coast markets.
Here is a progress report:
- Pacific Gas Transmission Co. and Pacific Gas & Electric Co. won final FERC approval to lay an 845 mile pipeline to transport as much as 755 MMcfd of Canadian gas mainly to utilities in southern California and 148 MMcfd to the Pacific Northwest. The approval hinges on the outcome of a final FERC environmental impact statement of the project. FERC issued a draft of the EIS Jan. 11 indicating that no environmental constraints prevented construction of the project.
- Transwestern Pipeline Co. will be allowed to proceed with business and financial decisions required to construct a 520 MMcfd lateral pipeline from the San Juan basin and expand its mainline system by 340 MMcfd. Approval for that step came in a preliminary finding by FERC that the project is in the public interest.
- Altamont Gas Transmission Co. also won preliminary FERC approval of its plan for a 30 in., 620 mile pipeline to move 719 MMcfd from Port of Wild Horse, Mont., at the Canadian border to Kern River Gas Transmission system near Opal in Southwest Wyoming.
Northern Border Pipeline Co. also seeks to revise plans to enlarge its pipeline system by superseding with a new filing an optional certificate pending before FERC.
PGT-PG&E EXPANSION
While PGT and PG&E officials had yet to review FERC's final order approving their pipeline expansion, the companies said the order apparently also required PGT to establish new open season procedures for initial allocation of expanded capacity.
But officials were confident no regulatory obstacles would prevent them from beginning construction in 1992 and offering transportation service in 1993.
Last December, the California Public Utilities Commission certified its environmental review and approved the California segment of the expansion (OGJ, Jan. 7, p. 25).
Southern California Edison Co. and San Diego Gas & Electric Co. have been offered options to become equity partners in the expansion. SoCal Edison has executed a long term agreement with Canadian suppliers to receive 200 MMcfd through the expansion and SDGE 100 MMcfd.
ENVIRONMENTAL REVIEWS
FERC's preliminary decision on Transwestern's application filed last September pertains to all nonenvironmental issues, and is subject to issuance of a final order, following completion of FERC's environmental review.
FERC intends to complete that review in time to consider a final order during second quarter 1991. If so, Transwestern could have its expansion in service by the 1991-92 heating season.
Transportation contracts supporting the San Juan project include 213 MMcfd by PG&E, 200 MMcfd by Southern California Gas Co., 50 MMcfd by Sunrise Energy Co., and 25 MMcfd by Southern Union Gas Co.
Altamont officials expect FERC's environmental reviews to be completed this year. Altamont is a joint venture of subsidiaries of Tenneco Gas, Petro-Canada Inc., Montana Power, and an affiliate of Amoco Canada Petroleum Co. Ltd.
NORTHERN'S NEW PLAN
Northern Border now proposes to acquire from Natural Gas Pipeline Co. of America the 30 in. Iowa Line running 147 miles from Ventura, Iowa, to Harper, Iowa, and to lay 231 miles of 30 in. line from Harper to Tuscola, Ill. The company also would add five 20,000 hp compressor stations to its existing 822 mile, 42 in. line, two 12,000 hp compressor stations between Ventura and Harper, and four 6,000 hp stations between Harper and Tuscola.
Northern Border's new plan would expand capacity to 1.8 bcfd into Ventura and 750 MMcfd from Ventura, with the ability to deliver up to 600 MMcfd to customers in Tuscola.
Northern Border officials say the company's revised proposal will allow enough flexibility of system design to ensure that its customer's needs would be served in a more market responsive manner.
They say the rate structure proposed for the expanded system would reduce by 9% transportation costs of existing customers.
U.S. markets could receive new gas volumes amounting to about 315 MMcfd from western Canada and about 90 MMcfd from the Williston basin.
The $424 million expansion, which includes $78 million to acquire Iowa Line, is to be ready for service in November 1992.
Copyright 1991 Oil & Gas Journal. All Rights Reserved.
