ALBERTA TO CONDUCT GAS PIPELINE INQUIRY

Alberta's Energy Resources Conservation Board will conduct an inquiry into competing proposals to build natural gas pipelines to California but will make no recommendations. Energy Minister Rick Orman said ERCB will be instructed to hold only a fact finding inquiry and let markets decide development. Orman earlier had considered using the board to decide which competitor should be granted a gas export permit by Alberta.

Nov. 4, 1991

2 min read

Alberta's Energy Resources Conservation Board will conduct an inquiry into competing proposals to build natural gas pipelines to California but will make no recommendations.

Energy Minister Rick Orman said ERCB will be instructed to hold only a fact finding inquiry and let markets decide development. Orman earlier had considered using the board to decide which competitor should be granted a gas export permit by Alberta.

Pacific Gas Transmission Co. plans a $1.7 billion expansion of its Alberta-California transmission system. The Altamont combine, headed by Tenneco Inc., is seeking approval of a $573 million line from Alberta to connect with the Kern River system at Opal, Wyo.

PGT has said it will start laying pipe in January. Orman believes only one California project is needed, but he said he would be delighted if the market is strong enough to justify two.

Altamont Pres. Ewell Muse said there is a strong chance both projects will be built to transport an additional 1.5 bcfd of Canadian gas to California.

Muse said if Alberta grants gas export permits to both projects, he thinks both will go ahead.

He said the Altamont system will be needed to fill the Kern River system from Wyoming to the Los Angeles area as Wyoming reserves are depleted.

PGT spokesman Martha Monfried said the company has spent $125 million to date on its project and is committed to a January construction start to begin deliveries in November 1993. Altamont also plans completion by that date.

Both projects have been campaigning to win the support of Alberta gas producers.