Questar Pipeline and Enterprise Announce Plans to Construct New Rockies Natural Gas Pipeline Hub

abarrelfullabarrelfull wrote on 14 Jan 2014 09:34

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Aug. 27, 2007

Questar Pipeline Company, a subsidiary of Questar Corp. (NYSE:STR), and an affiliate of Enterprise Products Partners L.P. (NYSE:EPD) have entered into a Memorandum of Understanding (MOU) to develop a new natural gas pipeline hub in the Rockies. As proposed, the White River Hub would be a header system that will be owned equally by the two companies. The facilities would connect Enterprise's natural gas processing complex near Meeker, Colorado, with up to six interstate pipelines in the Piceance Basin area, including Questar Pipeline.

As initially designed, the 30-inch hub pipeline would have the capacity to transport more than 2.5 billion cubic feet per day (Bcf/d) and would provide hub-related services for natural gas producers, marketers and purchasers in the area. The White River Hub pipeline would extend about 7 miles from Questar Pipeline's Greasewood, Colorado facilities to the nearby Enterprise Meeker natural gas processing complex. In addition to Questar Pipeline, the pipelines that are expected to be connected to the White River Hub are the Rockies Express Pipeline, owned by Kinder Morgan, Sempra and ConocoPhillips; Kinder Morgan's TransColorado Gas Transmission Company; El Paso's Wyoming Interstate Company and Colorado Interstate Gas Company; and the Williams-owned Northwest Pipeline Corporation. This system would allow shippers on these pipelines to access markets throughout the country.

"We are pleased to partner with Enterprise on this proposed project," said R. Allan Bradley, president and CEO of Questar Pipeline Company. "As natural gas production in Colorado's Piceance Basin and Utah's Uinta Basin continues to grow in importance to the nation's overall supply, the White River Hub will help facilitate flows out of the area onto long-haul pipelines serving eastern and western markets in the United States and will bring additional value to shippers on Questar Pipeline's system."

Michael A. Creel, Enterprise's president and CEO, said, "The new hub offers Enterprise the opportunity to significantly expand our capabilities to provide customers with enhanced connectivity to critical interstate pipeline systems, and represents the next logical step in our ongoing Rockies growth initiative. Consistent with Enterprise's integrated value chain philosophy, construction of the White River Hub complements our new Meeker complex and our Piceance Creek Gathering System, which will both play an important role in supplying the market with natural gas and natural gas liquids."

Under the terms of the MOU, Questar Pipeline will construct and operate the pipeline. Additionally, as foundation shippers, Enterprise has committed to 1.5 Bcf/d of firm capacity on the pipeline and Questar Pipeline has committed to 0.5 Bcf/d of firm capacity. An open season offering for the remaining firm capacity will be held immediately. Pending the results of the open season and regulatory approvals, the proposed pipeline is expected to be constructed in the summer of 2008 and be in service during the fall of 2008.

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