A new gas crossroads

Enterprise Products Partners of Houston and Questar Corp. of Salt Lake City are partnering to create a new hub that will connect up to six gas pipelines out of the Rockies.
The project isn’t very big — $38 million split between the companies for about seven miles of new pipe. But when it’s completed the White River Hub near Meeker, Colo. could help get surging Rocky Mountain natural gas production into energy-hungry eastern markets.
The project will link Enterprise’s Meeker processing plant and Questar Pipeline’s Greasewood, Colo. pipeline. It would be a 30-inch, 2.5 billion cubic feet per day capacity connection that would likely link the massive Rockies Express Pipeline owned by Kinder Morgan, Sempra and ConocoPhillips; Kinder Morgan’s TransColorado Gas Transmission Company; El Paso’s Wyoming Interstate Company and Colorado Interstate Gas Company; and the Williams-owned Northwest Pipeline. Not all the companies have signed on yet but Enterprise believes it’s likely they will.
Enterprise hopes White River will eventually be a pricing hub for traders. Who knows, maybe Meeker someday be like Erath, La., home of the Henry Hub (and the Acadian Museum), where the natural gas whose price is quoted by the New York Mercantile Exchange is traded.

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The Henry Hub post-Katrina.

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