Tuesday, August 28, 2007

Natural Gas Venture for Rocky Mountain

Questar Pipeline Company and Enterprise Products Partners announced today, August 27, 2007 from Salt Lake City and Houston, Texas that they have signed a Memorandum of Understanding to develop a new natural gas pipeline.

Questar Pipeline Company, a subsidiary of Questar Corporation and an affiliate of Enterprise Products Partners L.P. have entered into a Memorandum of Understanding to develop a new natural gas pipeline hub in the Rockies, USA. As proposed and presented by the two companies, the White River Hub would be a header system that will be owned equally by the two companies. The United States 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.

Questar Pipeline Company, a subsidiary of Questar Corporation and an affiliate of Enterprise Products Partners L.P. have initially designed the 30-inch hub pipeline that would have the capacity to transport more than 2.5 billion cubic feet per day and would provide hub-related services for natural gas producers, marketers and purchasers in the Rocky Mountain area. The jointly owned 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.

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