WYCO Development Plans $175 Million Natural Gas Pipeline in Colorado, Awards Contract

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Researched by Industrial Info Resources (Sugar Land, Texas)--WYCO Development LLC (Colorado Springs, Colorado), a joint venture company created by Colorado Interstate Gas Company (Colorado Springs, Colorado), a subsidiary of El Paso Corporation (NYSE:EP) (Houston, Texas), and Xcel Energy (NYSE:XEL) (Minneapolis, Minnesota) plans to develop the Denver Totem natural gas storage cavern and the new High Plains natural gas pipeline. WYCO recently awarded the construction contract to Gregory & Cook Construction Company (Houston, Texas) and will act as the general contractor.

In order to meet increasing natural gas demand for the Colorado Front Range market, including residential and commercial heating loads, industrial natural gas requirements, and gas-fired electric generation facilities, WYCO will build the High Plains pipeline project. The project will involve the construction of about 164 miles of 24-inch and 30-inch pipelines from the planned Totem Storage facility to connect with El Paso's Cheyenne compressor station. All of the new facilities will be in Colorado.

The estimated cost of the High Plains Pipeline Project is about $175 million, and construction is scheduled to begin in the second quarter of 2008 with a completion and in-service date targeted for the first quarter of 2009.

Xcel Energy, a major U.S. electricity and natural gas company, operates in eight states.

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