Hub pipeline construction to start soon for Piceance
Construction is set to begin in June on a $60 million pipeline that will divert some of the natural gas already tapped in the Piceance Basin.
The 27.4-mile pipeline, to be known as the Colorado Hub Connection, was approved by the Federal Energy Regulatory Commission.
It will take gas from the Meeker-White River hub to pipelines operated by Salt Lake City-based Northwest Pipeline.
Northwest serves markets in Seattle and Portland. The company maintains 3,900 miles of pipeline, and Williams Pipeline Partners owns 35 percent of it.
Williams is the biggest player in the Piceance Basin of northwest Colorado.
The 24-inch-diameter pipeline will provide about 360,000 dekatherms per day of firm transportation service on Northwest’s mainline, according to a Williams Pipeline Partners statement.
A dekatherm is a unit of energy equal to 10 therms or 1 million British thermal units.
Northwest filed its application with the federal commission in September.
Natural gas from the Piceance Basin fetches a lesser price in national markets because of the difficulty in transporting it from the Intermountain West.
“This is an attempt to address that,” Williams spokeswoman Michele Swaner said.
The Federal Energy Regulatory Commission also is considering the Ruby Pipeline, which would direct natural gas to the Pacific Northwest from Opal, Wyo.
Colorado Gov. Bill Ritter has asked the commission to act quickly and approve the Ruby Pipeline.