Transportation news briefs

Enron unit Transwestern Pipeline Co. increased its available gas transmission capacity to California by 15% as of May 1. Previously it had held combined east-west delivery capability of 1.6 bcf/d. The Transwestern line moves gas from the San Juan and Permian basins in New Mexico and West Texas to the California border. The $12 million expansion project included the installation of a 10,000-hp motor to run a new compressor station near Gallup, NM, and the addition of gas coolers at two existing compressor stations. Work began in mid-January.

Texas Utilities Co. (TXU), Dallas, is conducting a feasibility study for a new natural gas pipeline from Victoria to South Australia. The plan, if implemented, would end Santos Ltd.�s gas supply monopoly in South Australia. TXU has already become involved in the energy markets of the two states. It has bought one of Victoria�s electricity distributorships privatized by the administration of Victoria Premier Jeff Kennett, plus one of the paired Victorian gas distribution-retail businesses, for a total of $3.7 billion (Aus.). The company has also developed the underground gas storage facility and associated treatment plant at Port Campbell in western Victoria. Last week, the South Australian Government confirmed TXU as the successful bidder for a long-term lease of Optima Energy, one of the three state-owned generators up for sale. TXU will pay $315 million (Aus.) for the right to operate and manage Optima for 100 years. Optima operates the Torrens power station in Adelaide, which supplies 28% of South Australia's electricity needs.