TransCanada recently announced a joint venture to develop the proposed Palomar Gas Transmission pipeline in Oregon.

The Palomar pipeline will connect TransCanada’s existing Gas Transmission Northwest System (GTN) in central Oregon with NW Natural’s distribution system near Molalla, Oregon, approximately 30 miles southeast of Portland. NW Natural’s utility operations has agreed to contract for about 100 million cubic feet per day of capacity on the 36-inch-diameter pipeline.

“There are some major markets in the region – including GTN’s hometown of Portland – and as of today, they are served by a single interstate pipeline. Palomar provides us the opportunity to serve some of that load,” says Jeff Rush, TransCanada vice-president and GTN general manager.

NorthernStar LLC, developer of the proposed Bradwood Landing liquefied natural gas (LNG) terminal, may elect to take capacity on Palomar should the Bradwood Landing terminal and the Palomar pipeline be constructed. To address the possibility of serving an LNG terminal, Palomar will seek a FERC certificate to build 220 miles of 36-inch-diameter pipeline with a bi-directional capacity of 1.3 billion cubic feet a day. If an LNG terminal is not built, Palomar can still build the shorter segment to serve NW Natural’s customers.