el paso responds to ferc on expansion potential el paso says it ' s open to expansion of system
el paso natural gas " is willing to expand its system " to the california
border if " sufficient support " for such a project can be demonstrated through
long - term capacity contracts , the pipeline told ferc .
the pipeline ' s comments were in response to a commission inquiry asking el
paso to consider the feasibility of upgrading its proposed line 2000
crude - oil conversion project to a system expansion to help ease the pipeline
capacity crunch in the west . daniel m . adamson , director of ferc ' s office of
energy projects , raised the prospect in a jan . 3 letter to el paso , saying
that modifying the project " could assist the difficult situation " now facing
the california gas market .
specifically , the commission has recommended that el paso amend a pending
application in which it seeks to acquire an existing 30 - inch diameter ,
1 , 088 - mile crude oil pipeline from plains all american pipeline l . p . , and
convert part of it to natural gas transportation service . the line extends
from mccamey , tx , to bakersfield , ca . el paso plans to convert to gas service
a 785 - mile segment from mccamey to ehrenberg , az . el paso proposed the line
2000 project as a loop line to replace existing compression , and not as a
system expansion .
however , " there are several ways that an expansion could be accomplished , "
wrote el paso vice president al clark on jan . 15 . " el paso could add
compression to the proposed line 2000 project , or it could replace or
recommission the compression that the pending application proposes to abandon
in place . " as a third option , he said el paso could add new compression to
its existing system or loop either the existing system or line 2000 project .
the " preferable method will have to be determined by a careful analysis of
the relative costs and a determination of where shippers want the capacity ,
i . e . where they want to put gas into el paso ' s system and where they want the
gas delivered , " clark said .
as a " first step " towards gauging market support for an expansion , he noted
that el paso on jan . 12 posted 1 . 2 bcf / d of california - bound pipeline
capacity for sale effective june 1 of this year . the capacity currently is
held by affiliate el paso merchant energy , whose contracts expire may 31 .
when the posting results are known , " el paso will determine whether another
open season is needed to solicit expressions of interest in additional
pipeline capacity to serve markets both into and upstream of california . "
if el paso finds there is an " unmet demand for additional capacity " on its
system , the pipeline at that time " will evaluate whether an expansion of the
existing system or a modification of the line 2000 project , or both , is the
appropriate means of accomplishing the expansion , " clark noted .
in the meantime , he urged the commission to approve el paso ' s application for
the line 2000 project as it was filed . not only will the project " increase
the operational flexibility " of el paso ' s current system , but converting the
line from oil to gas service will be a " necessary prerequisite " to any future
expansion of the pipeline ' s system , according to clark .
el paso responds to ferc on expansion potential
el paso says it ' s open to expansion of system
el paso natural gas " is willing to expand its system " to the california
border if " sufficient support " for such a project can be demonstrated through
long - term capacity contracts , the pipeline told ferc .
the pipeline ' s comments were in response to a commission inquiry asking el
paso to consider the feasibility of upgrading its proposed line 2000
crude - oil conversion project to a system expansion to help ease the pipeline
capacity crunch in the west . daniel m . adamson , director of ferc ' s office of
energy projects , raised the prospect in a jan . 3 letter to el paso , saying
that modifying the project " could assist the difficult situation " now facing
the california gas market .
specifically , the commission has recommended that el paso amend a pending
application in which it seeks to acquire an existing 30 - inch diameter ,
1 , 088 - mile crude oil pipeline from plains all american pipeline l . p . , and
convert part of it to natural gas transportation service . the line extends
from mccamey , tx , to bakersfield , ca . el paso plans to convert to gas service
a 785 - mile segment from mccamey to ehrenberg , az . el paso proposed the line
2000 project as a loop line to replace existing compression , and not as a
system expansion .
however , " there are several ways that an expansion could be accomplished , "
wrote el paso vice president al clark on jan . 15 . " el paso could add
compression to the proposed line 2000 project , or it could replace or
recommission the compression that the pending application proposes to abandon
in place . " as a third option , he said el paso could add new compression to
its existing system or loop either the existing system or line 2000 project .
the " preferable method will have to be determined by a careful analysis of
the relative costs and a determination of where shippers want the capacity ,
i . e . where they want to put gas into el paso ' s system and where they want the
gas delivered , " clark said .
as a " first step " towards gauging market support for an expansion , he noted
that el paso on jan . 12 posted 1 . 2 bcf / d of california - bound pipeline
capacity for sale effective june 1 of this year . the capacity currently is
held by affiliate el paso merchant energy , whose contracts expire may 31 .
when the posting results are known , " el paso will determine whether another
open season is needed to solicit expressions of interest in additional
pipeline capacity to serve markets both into and upstream of california . "
if el paso finds there is an " unmet demand for additional capacity " on its
system , the pipeline at that time " will evaluate whether an expansion of the
existing system or a modification of the line 2000 project , or both , is the
appropriate means of accomplishing the expansion , " clark noted .
in the meantime , he urged the commission to approve el paso ' s application for
the line 2000 project as it was filed . not only will the project " increase
the operational flexibility " of el paso ' s current system , but converting the
line from oil to gas service will be a " necessary prerequisite " to any future
expansion of the pipeline ' s system , according to clark .