The project will provide an additional 125,000 dekatherms per day (Dth/d) of natural gas transportation capacity on the system from NW Colorado to Blanco, New Mexico, and is expected to cost around $50 million. To accommodate the additional volumes, Kinder Morgan will construct three new compressor stations and modify equipment at two existing locations, which will increase compression by more than 20,000 horsepower. .
“This project demonstrates the need for additional transportation infrastructure to move natural gas to markets from the growing supply basins of the Rocky Mountain region,” said Richard D Kinder, chairman and CEO of KMI. “TransColorado originates in the prolific, but underdeveloped, Piceance Basin of western Colorado, and provides a strategic link to the SW United States’ natural gas markets. TransColorado’s financial performance has continued to improve with the escalating demand for natural gas transportation. Currently, more than 90% of the 300,000Dth/d of existing, pre-expansion long-haul capacity is subscribed into 2008.” .
The TransColorado mainline system extends approximately 480km from the Greasewood Hub in Colorado, to the Blanco Hub area. The pipeline also interconnects with several major interstate systems along the way.