FERC okays Williams US Northwest gas line expansion

NEW YORK Dec 2 (Reuters) - Williams Cos (WMB.N) said Wednesday its Northwest Pipeline GP majority-owned subsidiary received federal approval to construct and operate a 15.5-mile (25-km), 30-inch (76-cm) diameter mainline natural gas loop from the Piceance Basin in Colorado to the Opal Hub in Wyoming.

The Federal Energy Regulatory Commission (FERC) approved the $65 million Sundance Trail expansion project, expected to be operational by November 2010, the company said in a statement.

"The Sundance Trail Project will meet the demand from producers to provide transportation capacity to move gas from one of the fastest-growing gas production fields in the Rockies to markets in the western U.S.," said Phil Wright, president of Williams' natural gas pipeline business.

The expansion will provide 150,000 dekatherms per day of firm transportation capacity from the Greasewood and Meeker/White River Hubs in Rio Blanco County, Colorado to the Opal Hub in Lincoln County, Wyoming.

In addition, the project will replace and enhance Northwest's compression facilities at the Vernal compressor station in Uintah County, Utah.

Northwest's mainline is connected to the Piceance Basin at the Greasewood Hub through its Piceance lateral and the Meeker/White River hubs through Northwest's new Colorado Hub Connection pipeline and related facilities.

At the Opal Hub producers have access to six interstate pipelines, including Northwest.

Williams Pipeline Partners LP WMZ.N owns a 35-percent interest in Northwest Pipeline GP. (Reporting by Eileen Moustakis; Editing by Marguerita Choy) ((eileen.moustakis@thomsonreuters.com; +1 646 223 6074; Reuters Messaging: eileen.moustakis.reuters.com@reuters.net)) ((For help: Click "Contact Us" in your desk top, click here [HELP] or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com; +1 646-223-5546))