The $62 million project provides 0.23 million dekatherms per day (dth/d) of new capacity through installation of an additional 25,300 horsepower of compression at the Wyoming Interstate Company’s Greasewood Compressor Station in western Colorado and at the Midpoint Compressor Station in northwestern Colorado.
The Piceance lateral expansion project will be funded using current revolving credit facilities, and it is expected to increase cash available for distribution by $4 million in 2010 and $12 million in 2011.
Jim Yardley, president and CEO of El Paso Pipeline Partners, said: This expansion project comes at a critical time for Rockies producers to move additional natural gas supplies to consuming regions by 2008 and beyond.
The Piceance expansion further illustrates the important need for additional long-haul export capacity, such as the Ruby Pipeline Project separately announced by El Paso Corporation earlier this month, to serve constrained Rocky Mountain natural gas supplies.
