El Paso Corp. announced Tuesday an expansion of the Colorado Interstate Gas Co. (CIG) natural gas pipeline transmission system that serves the Raton Basin.
CIG's Raton Expansion will provide approximately 130 million cubic feet per day (MMcf/d) of incremental firm capacity from the Las Animas County, Colo., area of the growing Raton Basin northward along the Front Range of Colorado to the Cheyenne Hub. The expansion, expected to cost approximately $146 million, is supported by long-term firm transportation commitments with three shippers for nearly all of the expansion's capacity.
"CIG has worked closely with Raton Basin producers to provide the necessary pipeline infrastructure to support the continued growth in production," said El Paso's Western Pipelines President Jim Cleary.
"This expansion provides producers with access to diverse markets both east and west via the Cheyenne Hub, which would potentially include access to growing demand centers in Nevada, Oregon and northern California through El Paso's Ruby Pipeline."
CIG's Raton expansion will consist of 118 miles of 16-inch pipeline, and El Paso has entered into a fixed-price contract for the purchase of steel pipe for the expansion. The expansion will increase CIG's capacity from the Raton Basin to more than 540 MMcf/d of natural gas.
The project is expected to be filed with the Federal Energy Regulatory Commission by early 2009, with construction beginning in late 2009. The in-service target is the second quarter of 2010.
El Paso Corp. provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America's largest interstate natural gas pipeline system and one of North America's largest independent natural gas producers.