Salt Lake-based Questar Market Resources Inc. said Friday it will form a joint venture with Western Gas Resources Inc. to provide gas gathering and compression services to areas in southwest Wyoming.
Through their subsidiaries, Questar Gas Management Co. and Mountain Gas Resources Inc., the companies have formed Rendezvous Gas Services LLC.
Rendezvous will build and operate gas pipeline and compression facilities with the capacity to transport approximately 275 million cubic feet per day of gas production from the Hoback Basin, which includes the Pinedale Anticline and Jonah Field areas.
The joint venture also will deliver gas for blending and processing services to the Granger and Blacks Fork processing plants. Mountain Gas is the sole owner and operator of the Granger plant and Questar Gas Management is a half-owner and the operator of the Blacks Fork plant.
Gas reserves from more than 179,000 acres are committed to the joint venture under existing gathering dedications.
Rendezvous has approved capital expenditures of about $15.5 million for an initial phase of pipeline and compression expansions scheduled for initial construction late this year. A second expansion phase of approximately $28 million is being evaluated, with construction expected to begin in mid-2002.
Questar Market Resources and Questar Gas Management are subsidiaries of Questar Corp.