The 42-in diameter pipeline will have capacity of up to 2billion cuft/d, and is estimated to cost $3 billion. The 2400-km line will originate at the Wamsutter Hub in Wyoming and extend to eastern Ohio, with an ultimate route to be selected based on shipper interest.
“We are excited about teaming-up with Sempra Pipelines & Storage on the proposed project, which would meet the unique challenges of customers at both ends of the pipeline,” said Scott Parker, president of KMP’s natural gas pipelines group. “If built, the pipeline would maximize the value of growing Rockies production by creating unprecedented access by one pipeline to multiple markets and storage, while providing markets in the upper Midwest and Eastern US with direct access to reliable, long-lived domestic natural gas supplies to meet growing demand.”
Along with providing producers much-needed ‘takeaway’ capacity, the pipeline would feature multiple interconnections with other major pipeline systems, and create significant flexibility and more options for reaching other demand-anchored markets. Producers would also be able more effectively to address the price differential between Rocky Mountain basins and other parts of the country. KMP and Sempra will share responsibility for development activities. Additionally, Sempra has agreed to bid for 200million cuft/d of capacity from the pipeline during a forthcoming open season, which it will use to serve distribution utilities on the East Coast. Initially, KMP would own two-thirds of the equity in the proposed pipeline and Sempra would own one-third.
Pending the feasibility of the project, customer commitments, and regulatory approval, the proposed pipeline is projected to be brought into service in stages, beginning in the latter part of 2008 and continuing through 2009.