Colorado Interstate Gas Company Planning a New Major Pipeline to Export Rocky Mountain Gas

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Colorado Interstate Gas Company is planning to construct a new 380-mile pipeline to export natural gas from the Rocky Mountains producing region to the plains states. The $340 million Cheyenne Plains Pipeline will originate at the Cheyenne Hub near Carr Colorado and terminate near Greensburg Kansas.

Colorado Interstate will construct one compressor station near the beginning of the line, utilizing three turbine based compressor units, totaling approximately 32,000 horsepower. Initially, the pipeline will have a capacity of 500 mmscfd of natural gas and could be expanded up to 1.2 Bcf by adding additional compression at a later date.

Colorado Interstate expects to file an application for a certificate of public convenience and necessity with the FERC in April of 2003 and to begin construction in the late summer of 2004. Colorado Interstate will award the construction of the pipeline in three separate contracts and expects to place the new pipeline into service in 2005. When completed the pipeline will interconnect with six other pipelines including NGPL, Panhandle Eastern and Williams.

Colorado Interstate Gas Company is a subsidiary of El Paso Energy Corporation (Houston Texas) (NYSE:EP) and when coupled with its sister company Wyoming Interstate Company comprises 4,850 miles of pipeline and 65 Compressor Stations connecting nearly every major supply basin in the Rocky Mountains.

IIR has been tracking the progress of the Cheyenne Plains Pipeline since June of 2001.