Western gas pipeline receives federal approval

HOUSTON — El Paso Corp. announced Monday that it has received approval from the Federal Energy Regulatory Commission for its proposed Ruby Pipeline natural gas project.

The Ruby Pipeline project is a 675-mile interstate natural gas pipeline that would travel through Utah, Wyoming, Nevada and Oregon. The project also would involve building four new compressor stations and related facilities.

Officials with Houston-based El Paso Corp. said the pipeline would begin in Opal, Wyo., and travel through Utah's Rich, Cache and Box Elder counties and across Nevada before ending in Malin, Ore., near California's northern border.

The pipeline would transport natural gas to local utilities that provide service to individual homes, small and large businesses, and electric-generating plants in California, Nevada and Oregon.

The $3 billion pipeline would transport up to 1.5 billion cubic feet of natural gas per day and could be expanded to 2 billion cubic feet, according to El Paso spokesman Richard Wheatley.

"We are pleased to receive FERC approval for a major new pipeline that will benefit both natural gas producers and consumers in the western United States," Jim Cleary, president of El Paso's Western Pipeline Group, said in a news release. "We are proud of the fact that Ruby will be the first carbon-neutral pipeline in U.S. history, employing industry-leading technologies and measures to mitigate potential climate, wildlife and habitat impacts from its construction and operation."

Pending receipt of rights of way from the U.S. Bureau of Land Management, construction of the project is scheduled to begin in late spring 2010 and be in service in March 2011, the release stated.

According to a statement, El Paso Corp. has entered into agreements with Global Infrastructure Partners, under which GIP will invest up to $700 million in the Ruby project. Upon satisfaction of various closing conditions, GIP will acquire a 50 percent equity interest in the project.

El Paso Corp. produces natural gas and related energy products. The company also owns North America's largest interstate natural gas pipeline system and one of North America's largest independent natural gas producers.

This story was reported from Salt Lake City.

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