Questar Pipeline Company Evaluates Completing Southern Trails Pipeline

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Questar Pipeline Company (Salt Lake City, Utah), a subsidiary of Questar Corporation (NYSE: STR) (Salt Lake City, Utah), is evaluating the economics of completing construction of the last leg of its Southern Trails Pipeline. The original scope of the project included conversion of the old 693-mile "Four Corners" crude oil pipeline from crude oil to natural gas usage, the construction of one new compressor station, and the conversion of six existing pump stations to compressor stations amounting to 18,356 horsepower of internal combustion engine driven compression. The old 693-mile "Four Corners" crude oil pipeline was purchased from ARCO for $38 million. By the summer of 2002, the majority of the pipeline had been converted and four of the compressor stations had been put into service.

For more information on the Southern Trails Pipeline Conversion see Industrialinfo.com's May 22, 2002 news article: Questar Nears Completion of Southern Trails Pipeline Conversion.

Now, Questar Pipeline is examining the conversion of the last 200 or so miles of 16"-diameter pipeline from crude oil to natural gas usage and putting into service the remaining three compressor stations, which are, as well, based on internal combustion-driven compression. The Southern Trails Completion project has a price tag of approximately $50 million, and Questar Pipeline expects to amend its existing FERC certificate in 2005. Construction is expected to begin in late 2005, with completion slated for some time in 2006.

Southern Trails Pipeline is operated by Questar Southern Trails Pipeline (Salt Lake City, Utah), a business unit of Questar Pipeline, and provides natural gas transportation service from the San Juan & Rocky Mountains basins to interconnects with TransColorado Gas Transmission Company, TransWestern Pipeline Company hub, WFS Milagro Plant, PG&E Company, Southern California Gas Company, Citizens Gas Company and the Navajo Tribal Utility Authority.