Northern Border Partners
( NBP) and
formed a new pipeline joint venture.
The joint-venture company, called Overland Pass Pipeline, will build a 750-mile natural gas liquids pipeline from Opal, Wyo., to Conway, Kan. It will to transport 110,000 barrels a day of natural gas liquids, which could be increased to 150,000 barrels a day with additional pump facilities.
Start-up is scheduled for early 2008
The estimated cost of the pipeline project is about $450 million. In addition Northern Border Partners plans to invest about $160 million to expand its existing fractionation capabilities and the capacity of its natural gas liquids distribution pipelines.
Financing for both projects may include a combination of short- or long-term debt or equity, the company said.
According to the joint venture, Northern Border Partners initially will own 99% of the joint venture and Williams will own the remaining 1% with Williams having the option to increase its ownership to 50% and become operator within two years of the pipeline becoming operational.
"The pipeline will link the high-growth NGL production area in the Rocky Mountain region to fractionation facilities at Bushton and Conway," said John W. Gibson, Northern Border Partners president and chief operating officer. "The existing infrastructure serving the region is reaching capacity, which makes construction of a new, more energy-efficient pipeline necessary to meet the growing demand for NGL transportation and fractionation."
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