California isn’t a large market for natural gas yet, but El Paso Corp. is prepared for an increased demand for natural gas power generation in the region with its Mojave Pipeline.
The 362-mile pipeline is designed to transport up to 1.2 billion cubic feet per day of natural gas from the Kern River Transmission Co. pipeline system in northern Arizona. The Kern River system delivers gas from southwestern Wyoming through Utah and Nevada to Arizona.
Both pipelines were the first interstate natural gas pipelines to extend into California in 1992. Previously, the state had limited its pipeline service to intrastate service. Because of the relative lack of demand in the state, there is no storage associated with the pipeline.
According to Hart Energy’s Mapping & Data Services, the system’s top transport customers are El Paso Natural Gas at 510,000 dekatherms per day (Dth/d) and Occidental Energy Marketing at 40,000 Dth/d. These contracts extend to 2015.
Although demand may increase in the future, from 2006 to 2009 the system’s usage and revenue decreased. In 2006, the Mojave Pipeline’s revenue was $42 million with 461,000 Dth/d of annual throughput. By 2009, these figures had decreased to $21 million and 378,000 Dth/d.
The system’s top receipt points in 2010 were Kern River-Daggett followed by El Paso-Topock. Its top delivery points that same year were Wheeler Ridge followed by El Paso-Cadiz.
Contact the author, Frank Nieto, at fnieto@hartenergy.com.
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