Questar Gas Management Begins Construction on Wyoming Natural Gas Pipeline

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Researched by Industrial Info Resources (Sugar Land, Texas). Questar Gas Management Company (Denver, Colorado), an unregulated business unit of Questar Corporation (NYSE:STR) (Salt Lake City, Utah), has commenced construction on its Rendezvous natural gas pipeline project in Wyoming. Questar Gas Management began construction on the new 20.8 mile, 20-inch diameter pipeline on July 18, 2006, and is approximately 25% complete with construction on the new line.

The Rendezvous pipeline originates at Questar’s Black Forks natural gas processing plant and will terminate at an interconnection with the Kern River pipeline system at Muddy Creek, Wyoming. Once completed in late 2006, the new pipeline will be capable of transporting 330 million cubic feet per day of natural gas. To supply compression to the $35 million pipeline, Questar will install a single Caterpillar 3616 engine-driven compressor package at the Black Forks processing and compression facility at an approximate capital cost of $6 million in addition to the cost of the pipeline.

Over the next three to four years, Questar Gas Management Company intends to spend approximately $500 million for capital projects to increase natural gas and oil production in the region. The capital spending will be spread across new pipelines, compression additions, refrigeration plants and oil production and storage facilities.

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