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Last updated on April 23, 2014 at 21:24 EDT

Sempra Pipelines & Storage Seeks Partnership Stake in Sunstone Pipeline

June 18, 2008

Sunstone Pipeline, a Williams and TransCanada joint venture company, has announced that Sempra Pipelines & Storage, a unit of Sempra Energy, has signed a memorandum of understanding with the existing partners to acquire a 25% ownership interest in Sunstone Pipeline, and for a Sempra affiliate to contract for a significant amount of capacity in the proposed gas pipeline.

The estimated $2.34 billion pipeline project would run from the Rocky Mountains to Oregon. The news that Sempra Pipelines & Storage intends to acquire a stake in Sunstone follows the conclusion of an open season for transmission capacity from the Rocky Mountain supply area at Opal, Wyoming, to Stanfield, Oregon. Seven other shippers have made commitments to the proposed pipeline.

Sunstone Pipeline is a proposed 585-mile, 42-inch-diameter pipeline with capacity of up to 1.2 billion cubic feet per day. The project, which is proposed for service in 2011, would involve constructing a new pipeline substantially parallel to the existing Northwest Pipeline system which is jointly owned by Williams and Williams Pipeline Partners.

Phil Wright, president of the Williams Gas Pipeline Company, said: “We are encouraged by the results of the open season and are pleased to welcome the proposed partnership with Sempra Pipelines & Storage. This strong showing provides the momentum to continue discussions with several potential customers, including both market area and producer customers. This is a clear demonstration of the growing level of market support for the Sunstone project.”