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HOUSTON, Sept. 22, 2003 -- Cheyenne Plains Gas Pipeline Company, a subsidiary of El Paso Corp., announced that, subject to Federal Energy Regulatory Commission (FERC) approval, it plans to use 36-inch diameter pipe rather than 30-inch pipe as originally proposed in its application to FERC on May 20, 2003, for the Cheyenne Plains pipeline -- a 380-mile natural gas pipeline that will extend from Cheyenne, Wyoming to Greensburg, Kansas.
The plan to increase the size of the pipeline is due to significant customer response to an additional open season following the Cheyenne Plains FERC application.
Cheyenne Plains will seek authorization from FERC to increase the capacity from its initial design of 560 thousand dekatherms per day (Mdth/d) to at least 730 Mdth/d, and to place the additional capacity in service within a year after the Cheyenne Plains pipeline initially goes in service.
The project is backed by 560 Mdth/d of firm contracts with terms of 10 years or longer from 14 shippers and has additional 10-year contractual commitments supporting the expansion up to 730 Mdth/d.
The original capital cost included in the FERC application for the 30-inch pipeline project was approximately $336 million. The estimated capital cost associated with the 730-Mdth/d project is $425 million.
"Constructing Cheyenne Plains as a 36-inch diameter pipeline will allow the pipeline to expand competitively with incremental compression up to a potential capacity of 1.7 billion cubic feet per day," said Patricia A. Shelton, president of El Paso's Western Pipeline Group. "We feel that Cheyenne Plains will be ready to add capacity to markets in the Midwest, with minimum environmental and landowner impact, as new supply develops in the Rockies."
Although the change in diameter will require Cheyenne Plains to amend its current certificate filing with the FERC, it is not anticipated that the in- service date of the Cheyenne Plains pipeline will be affected. "We currently remain ahead of schedule and are optimistic that the Cheyenne Plains Pipeline will be in service in early 2005," Shelton added.
El Paso Corporation is a provider of natural gas services and the largest pipeline company in North America. The company has core businesses in pipelines, production, and midstream services. Rich in assets, El Paso is committed to developing and delivering new energy supplies and to meeting the growing demand for new energy infrastructure. For more information, visit www.elpaso.com .
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