Sempra seeks partnership stake in Sunstone

Sempra Pipelines & Storage, a unit of Sempra Energy, has signed a memorandum of understanding with Williams and TransCanada Corp. to acquire a 25% ownership interest in the proposed Sunstone natural gas pipeline and for a Sempra Energy affiliate to contract for a large amount of capacity on the proposed line.

Jun 25th, 2008

By OGJ editors
HOUSTON, June 25 -- Sempra Pipelines & Storage, a unit of Sempra Energy, has signed a memorandum of understanding with Williams and TransCanada Corp. to acquire a 25% ownership interest in the proposed Sunstone natural gas pipeline and for a Sempra Energy affiliate to contract for a large amount of capacity on the proposed line.

The $2.34 billion pipeline will originate at the Opal Hub in Wyoming and extend to Stanfield, Ore., where it will interconnect with Williams' Northwest Pipeline system and TransCanada's Gas Transmission Northwest pipeline system.

Sunstone is a proposed 585-mile, 42-in. pipeline paralleling the existing Northwest Pipeline system, which is jointly owned by Williams and Williams Pipeline Partners LP. The new line will be capable of transmitting as much as 1.2 bcfd of gas.

It is expected to be in service in 2011.


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