Kinder Morgan, Calpine to build California gas pipeline

Kinder Morgan Energy Partners and Calpine Wednesday said they will co-develop a 1,160-mile gas pipeline from the San Juan Basin in northern New Mexico into California. The $1.7-bil Sonoran Pipeline's first, $624-mil phase would be comprised of 460 miles of 36-inch pipe from interconnects with TransColorado Gas Transmission, Transwestern Pipeline and others at the Blanco Hub. It would then continue west with delivery points on the California/Arizona border near Needles, with a 20-mile, 24-inch lateral to Topock. The pipeline would initially transport up to 750,000 Dt/d and could be expanded with compression to up to 1-mil Dt/d, the companies said. Kinder Morgan Vice President Scott Parker said the co-developers would be "equal owners" in the pipeline project.
A binding open season for Phase One of the pipeline will be held this month, with a 400,000 Dt/d bid from Calpine already accepted, the companies said. Given sufficient shipper support in the open season, a summer 2003 in-service date is planned, they said. Phase Two would be a $1.1-bil, 590-mile extension to Antioch in the San Francisco Bay area, consisting of 36-inch and 42-inch pipeline. Phase Two would carry 1-mil Dt/d to 1.5-mil Dt/d. A non-binding open season would be held on Phase Two simultaneously with the Phase One open season. Calipine has already placed a non-binding bid for 500,000 Dt/d for Phase Two. The gas pipeline, Kinder Morgan's first to California and within the state, could connect with several gas pipelines, utilities and suppliers, the companies said.