New natural gas pipeline to California

Kinder Morgan Energy Partners, L.P. and Calpine Corporation plan to jointly develop the Sonoran Pipeline, subject to a successful open season and all other approvals. The Sonoran Pipeline will be a 1160-mile, high-pressure interstate natural gas pipeline from the San Juan Basin in northern New Mexico to markets in California. Pete Cartwright,of Calpine: “The Sonoran Pipeline will help ensure a diverse supply of natural gas in California. With our existing plants in California, and our plans to bring on line an additional 9000mw of capacity, it is essential that we have a dependable, competitively priced source of natural gas.â€? The project is to be developed in two phases. Phase one will consist of approximately 460 miles of 36-inch, high-pressure natural gas interstate pipeline originating from interconnects with TransColorado Gas Transmission Company, Transwestern Pipeline Company and various points at the Blanco Hub in San Juan County, N.M. near the Colorado-New Mexico state line, providing access to the major producing basins in the western U.S. The pipeline will continue westward with delivery points on the California/Arizona border near Needles with a 20-mile, 24-inch lateral to Topock. The pipeline will initially transport up to 750,000 Dth of natural gas per day and can be economically expanded with compression to transport up to 1.0 million Dth per day. Given sufficient shipper support in the open season, Sonoran Pipeline, LLC (Sonoran) proposes an in-service date in the summer of 2003. The estimated cost of phase one of the project is approximately USD 624 million. Phase two will consist of approximately 590 miles of 36-inch and 42-inch high-pressure interstate natural gas pipeline continuing from Needles on the California border to points within California, terminating near Antioch in Contra Costa County. Depending on shipper interest, it will transport from 1.0 to 1.5 million Dth of natural gas per day. The estimated cost of phase two is approximately USD 1.1 billion. The pipeline could connect with several gas pipelines, utilities and suppliers, and numerous gas-fired power plants along its route.