GRAND JUNCTION, Colo.—A subsidiary of Williams is set to start construction in June on a $60 million natural gas pipeline in western Colorado.
Federal regulators have approved the 27.4-mile pipeline, the Colorado Hub Connection. Salt Lake City-based Northwest Pipeline will operate the 24-inch-diameter line
The pipeline will connect to a hub in western Colorado’s Piceance (PEE’-ance) Basin. Northwest Pipeline serves markets in Seattle and Portland, Ore.
Williams is the largest gas producer in the Piceance Basin, which has led Colorado the last few years in the number of new drilling permits. Companies have reduced drilling as the recession has worsened and gas prices have dropped.
Another issue is a shortage of pipeline capacity in Colorado. Competition for space in pipelines results in an excess of gas, forcing companies to reduce prices to get their product shipped.
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Information from: The Daily Sentinel,
