TransCanada is proposing a natural gas pipeline project from the Rockies supply basins to connect with markets in the U.S. Midwest. The pipeline is being developed in response to forecast supply growth in the U.S. Rockies gas basins that is anticipated to exceed existing Rockies export transportation capacity in the 2010 to 2012 timeframe.
“The proposed Pathfinder Pipeline would provide customers with access to the growing U.S. Midwest market and potentially to Eastern markets and gas storage facilities using existing infrastructure,” says Todd Johnson, Director, U.S. Pipeline Development. “Pathfinder Pipeline will connect to pipeline systems that serve the U.S. Midwest, Northeast U.S. and Eastern Canada, providing customers with increased flexibility and market optionality.”
The proposed Pathfinder Gas Pipeline project is an approximate 500-mile (800-kilometre), 42-inch diameter pipeline that will move gas northeast from the Rockies connecting Wamsutter, Wyoming to the Northern Border Pipeline Company system for delivery into the Ventura and Chicago area markets. The project will include an option for an approximate 140-mile (225-kilometre) pipeline connecting Meeker, Colorado to Wamsutter. The initial capacity for the pipeline is 1.2 Bcf/d, with an ultimate capacity of 2.0 Bcf/d. The expected in-service date is late 2010.
To meet further growth in Rockies gas supply, a potential future phase would extend the Pathfinder pipeline approximately 275 miles (440 kilometres) from the Northern Border Pipeline to Emerson, Manitoba (Noyes, Minnesota), where gas can be shipped to Eastern markets or storage facilities using the Great Lakes Gas Transmission system and TransCanada’s Canadian Mainline system. This future extension could be available for service as early as the fourth quarter of 2011.
Memorandum of Understanding
On May 12, 2008, TransCanada Corporation, affiliates of Enterprise Products Partners L.P., and Quicksilver Gas Services LP announced they have signed a Memorandum of Understanding (“MOU”) regarding the proposed Pathfinder Pipeline project. Pursuant to the MOU, Enterprise and Quicksilver Gas Services would acquire up to an aggregate 50 per cent ownership in the proposed Pathfinder Pipeline project and commit to ship a total of 500 MMcf/d for a 10-year term, on the Pathfinder Pipeline, subject to the execution of definitive agreements. Upon execution of Enterprise’s and Quicksilver Gas Services’ option to acquire ownership, TransCanada’s ownership in Pathfinder would be reduced, but will continue to be responsible for developing, constructing and operating Pathfinder.
Binding Open Season Currently Underway
Parties interested in securing capacity on the pipeline are invited to participate in a binding Open Season that expires on May 30, 2008 at 4:00pm MST. TransCanada will accept binding bids from parties for firm natural gas transportation capacity from Meeker and from Wamsutter to Northern Border’s compressor station #6. TransCanada also is seeking non-binding expressions of interests for the possible future 275-mile (440-kilometre) extension of the proposed Pathfinder Pipeline project from Northern Border Pipeline Company to Noyes, Minnesota, and Emerson, Manitoba.
For more information on the Open Season contact:
The proposed Pathfinder Pipeline project web page provides additional information about the project, including Open Season guidelines and a map of the proposed pipeline corridor.
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