Subject: more details on kern river expansion
williams to expand kern river by 124 , 500 dth / d
kern river gas transmission , a subsidiary of williams , said it planned on
filing an application yesterday with ferc to add 124 , 500 dth / d of additional
firm transportation capacity to its 922 - mile pipeline system . the company
said the california expansion project will not only provide additional
natural gas capacity from wyoming to markets in california , but also will
provide an opportunity for williams to offer significantly reduced rates for
firm transportation based on the recent approval by ferc of kern river ' s
extended term rate program .
" a combination of rapid growth and the development of new gas - fired power
generation facilities in california is fueling expansion of the system , " said
kirk morgan , director of business development for kern river and northwest
pipeline .
the project includes construction of three new compressor stations , an
additional compressor at an existing facility in wyoming , restaging a
compressor in utah , and upgrading two meter stations . kern river said the $ 80
million project is targeted to be complete by may 1 , 2002 .
the company said demand for firm transportation on kern river was driven by
several factors : the diversion of canadian gas supplies to markets in the
midwest from the pacific region ; increased production in the rocky mountain
basin ; strong economic growth in kern river ' s market areas ; and increased
demand from gas - fired electric generation facilities .
williams said it anticipates holding an open season later this year to
determine the level of market interest in a second expansion of the kern
river pipeline . " the demand for competitively priced transportation to
markets in nevada and california continues to grow . at the same time , gas
producers in the rocky mountain basin are stepping up production . an
expansion on kern river in 2003 could help bring that production to market , "
said morgan .