El Paso Natural Gas Moves Forward with All American Line 1903 Pipeline Conversion

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). El Paso Natural Gas Company (Houston, Texas), a subsidiary of El Paso Corporation (NYSE:EP)(Houston, Texas), has received a certificate from the Federal Energy Regulatory Commission (FERC) approving the All American Pipeline 1903 project. The All American Pipeline 1903 project involves the conversion of an existing crude oil pipeline into an operational natural gas pipeline with a capacity of 502 million cubic feet per day of natural gas service.

El Paso acquired the pipeline in March of 2000 and will expend $31 million in capital outlays to convert the pipeline. The scope of work includes testing and converting 88 miles of existing 30-inch diameter pipeline originating near Ehrenberg, Arizona, and terminating near Cadiz, California, and the construction of a new 6.4-mile segment of 30-inch diameter transmission pipe to connect the All American Line 1903 to the Mojave pipeline, which is another subsidiary of El Paso Corporation. Other facilities to be constructed involve one custody transfer station, four mainline valves, one metering station, one pressure regulator station, and an interconnection with an existing natural gas compressor station.

El Paso Natural Gas Company hopes to select a general contractor and begin construction on the All American Line by the forth quarter of 2005. Completion is expected in either late 2005 or early 2006, depending on when El Paso receives its final permits from California's State Land Commission and the U.S. Department of Interior’s Bureau of Land Management. Industrial Information Resources has been tracking the progress of the All American Pipeline 1903 project since June of 2001.

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