Calpine Plans New Natural Gas Pipeline in Oregon

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Calpine Corporation (NYSE:CPN)(San Jose, California) is currently studying several natural gas pipeline scenarios to export natural gas from its planned Skipannon LNG terminal on the coast of Oregon. Calpine recently secured a 60-year lease on 96 acres of land from the Port of Astoria as the site of the LNG terminal. The LNG terminal itself will have a daily re-gasification capacity of one billion cubic feet per day of natural gas.

To transport the natural gas to markets in the region, Calpine intends to construct a new 36” diameter pipeline to interconnect with an area mainline. The proposed pipeline will have a transmission capacity of 1-1.5 billion cubic feet per day. Calpine is currently studying the feasibility of different routes for the pipeline. The two top proposals are a 60-mile pipeline originating at the Port of Astoria and terminating near Longview, Washington. The pipeline would interconnect with the Northwest Pipeline system owned by Tulsa based Williams Companies Incorporated (NYSE:WMB). The second and larger of the two route studies is a 260 mile 36” diameter pipeline originating at the LNG terminal and terminating at an interconnection near Madras, Oregon, with a mainline pipeline owned by TransCanada (TSX:TRP).

Calpine expects to complete its studies and complete permitting for the chosen pipeline route by late 2007. Construction and completion for the new pipeline is scheduled to coincide with the completion of the Skipannon LNG terminal some time in 2010.

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