Kinder Morgan Energy Partners and Calpine Wednesday said they will co-develop a 1,160-mile gas pipeline from the San Juan Basin in northern New Mexico into California. The $1.7-bil Sonoran Pipeline's first, $624-mil phase would be comprised of 460 miles of 36-inch pipe from interconnects with TransColorado Gas Transmission, Transwestern Pipeline and others at the Blanco Hub. It would then continue west with delivery points on the California/Arizona border near Needles, with a 20-mile, 24-inch lateral to Topock. The pipeline would initially transport up to 750,000 Dt/d and could be expanded with compression to up to 1-mil Dt/d, the companies said. Kinder Morgan Vice President Scott Parker said the co-developers would be "equal owners" in the pipeline project.
A binding open season for Phase One of the pipeline will be held this month, with a 400,000 Dt/d bid from Calpine already accepted, the companies said. Given sufficient shipper support in the open season, a summer 2003 in-service date is planned, they said. Phase Two would be a $1.1-bil, 590-mile extension to Antioch in the San Francisco Bay area, consisting of 36-inch and 42-inch pipeline. Phase Two would carry 1-mil Dt/d to 1.5-mil Dt/d. A non-binding open season would be held on Phase Two simultaneously with the Phase One open season. Calipine has already placed a non-binding bid for 500,000 Dt/d for Phase Two. The gas pipeline, Kinder Morgan's first to California and within the state, could connect with several gas pipelines, utilities and suppliers, the companies said.
Kinder Morgan, Calpine to build California gas pipeline
Source : Neftegaz.RU