Trunkline Gas Begins Compressor Replacement in Texas - Plans More

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Trunkline Gas Company LLC (Houston, Texas), a business unit of Panhandle Energy (Houston, Texas), a subsidiary of Southern Union Company (NYSE:SUG) (Wilkes-Barre, Pennsylvania), begins the construction phase of its Eden compressor station #23 compressor replacement this week. At the Eden compressor station located in Edna, Texas, Trunkline will abandon in place a single 6,350 horsepower GE MS2003 turbine compressor unit dating back to 1954 and install a new 1,675 horsepower Caterpillar G3606 engine compressor package.

After the new unit is installed, the certified design capacity of the Eden station will fall from the present 273 million cubic feet per day to 200 million cubic feet per day of natural gas flow through, due to the lower horsepower rating. For the past five years, the natural gas through put on this segment of Trunkline's system has averaged 95 million cubic feet per day, with a peak utilization of approximately 140 million cubic feet per day. The total capital cost of the Eden station compressor replacement is $1.7 million.

Small potatoes in the pipeline world, but Trunkline is in the early planning phase of seven or eight larger compressor unit additions. This time around, the units will be in the 4,000 horsepower range, such as a Caterpillar 3616 engine compressor unit package. The units will be distributed along the whole line, with either three or four units being placed in on the Texas segment of the line where, Trunkline has four compressor stations - Beeville, Cypress, Kountze, and Eden. Assuming that this project goes forward, then the capital outlay could be in the $25 to $35 million range, depending on the final design. Trunkline expects to make a 7c filing with the FERC in late 2005 or early 2006 for the compression expansion project, and construction could begin in late 2006 or 2007.

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