Overthrust Proposes 500,000 Dth/d Wyoming Expansion Project

Questar subsidiary Overthrust Pipeline is holding an open season to test market interest (both binding and non-binding agreements) in a 500,000 Dth/d pipeline expansion and extension project that would allow greater gas flows east to numerous pipeline interconnections and west to the Opal Hub.

Overthrust runs east and west about 88 miles across southwestern Wyoming. The expansion would create new delivery points with the ability to transport 500,000 Dth/d of gas to Kern River Gas Transmission and Northwest Pipeline at Opal. It also would allow deliveries between 500,000 Dth/d and 1.5 million Dth/d day on the eastern end of the system from existing and proposed receipt points to downstream pipelines, including Wyoming Interstate, Colorado Interstate Gas, Northwest, Questar Pipeline at Kanda, WY, as well as to the large diameter long-haul pipelines proposed by several other pipeline companies.

Kinder Morgan and Sempra Energy, as well as El Paso Corp. and Northern Border have all proposed separate long-haul pipeline projects that would carry Rocky Mountain gas production to markets in the Midwest, Midcontinent and eastern United States.

As part of its open season, Overthrust also is seeking non-binding expressions of interest in an extension of its pipeline system in Sweetwater County, WY, southeast from Kanda, WY, to the Wamsutter Hub. Overthrust said its project is designed to serve growing production from the Wamsutter Field and other areas of the Greater Green River Basin, as well as the Piceance Basin, and the Overthrust and Uinta basins.

BP said last week that it will invest up to $2.2 billion to double production from its acreage in the Wamsutter Field (see Daily GPI, Oct. 14). The $2.2 billion program includes drilling 2,000 wells over the next 15 years. It is expected to increase BP's share of ultimate recovery from the Wyoming field by 450 MMboe and increase daily net production 125-250 MMcf/d by the end of the decade.

Meanwhile, EnCana, Williams and others are planning to dramatically increase production from the Piceance Basin. EnCana's Entrega Gas Pipeline asked FERC late last month for the go-ahead to begin construction on a 136-mile segment of its proposed system from the Meeker Hub in the Piceance Basin in Rio Blanco County, CO, to Wamsutter, WY [CP04-413] (see Daily GPI, Sept. 26).

Overthrust said depending on customer response and the magnitude of the expansion, the anticipated in-service date for its project could be as early as the first quarter of 2007.

The open season began on Tuesday and will close Thursday, Nov. 17. For details call Tom Myrberg at (801) 324-2978 or Gaylen Haag at (801) 324-5133 or visit the Overthrust website at http://www.questarpipeline.com.

Copyright 2005 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.

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