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TransCanada and NW Natural Form Palomar Gas Transmission Joint Venture
TransCanada and NW Natural Form Palomar Gas Transmission Joint Venture.
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[{"type":"text","content":"\n\n\n\nPartners Propose New Natural Gas Pipeline for Oregon\n\n\nPORTLAND, ORE., August 6 /CNW/ - Palomar Gas Transmission LLC (Palomar),\na newly formed joint venture of TransCanada Corporation (TransCanada)\n(NYSE:TRP)(TSX:TRP) and Northwest Natural Gas Company (NW Natural) (NYSE:NWN),\nannounced today a proposal to build a natural gas pipeline that would serve\ngrowing markets in Oregon, the Pacific Northwest, and the western U.S. If\napproved, the new transmission line is scheduled to begin service in late\n2011.\n\n\nPalomar was formed by TransCanada and NW Natural to design, construct,\nand own the Palomar pipeline. TransCanada and NW Natural are equal owners of\nthe joint venture. TransCanada's Gas Transmission Northwest System (GTN),\nheadquartered in Portland, will operate the proposed pipeline. The partners\nare seeking a federal certificate to build and operate a pipeline extending\napproximately 220 miles from northwestern Oregon to north-central Oregon.\n\n\nThe Palomar pipeline will connect TransCanada's existing GTN System in\ncentral Oregon with NW Natural's distribution system near Molalla, Oregon,\napproximately 30 miles southeast of Portland. NW Natural's utility operations\nhas agreed to contract for about 100 million cubic feet per day of capacity on\nthe 36-inch-diameter pipeline.\n\n\n"NW Natural currently depends on a single interstate pipeline for its\nsupply, approximately two-thirds of which comes through the Columbia Gorge,"\nsaid Gregg Kantor, president and chief operating officer of NW Natural. "The\nPalomar pipeline would significantly diversify our delivery options and\nenhance reliability for NW Natural's customers." NW Natural serves about\n641,000 residential, business, and industrial customers in Oregon and\nsouthwest Washington.\n\n\nNorthernStar LLC, developer of the proposed Bradwood Landing liquefied\nnatural gas (LNG) terminal, may elect to take capacity on Palomar should the\nBradwood Landing terminal and the Palomar pipeline be constructed.\n\n\n"This project is being designed so that, if an LNG terminal is\nconstructed on the Columbia River, the Palomar pipeline can be extended to\nserve it," Kantor said.\n\n\nThe total cost of the project is estimated to be between $600-700 million\nin current dollars if both proposed sections are built.\n\n\nPalomar wil...