A 680 mile natural gas pipeline by El Paso Corp. will carry Rockies Natural gas from Wyoming to Malin, on Oregon’s border with California.
A 680 mile natural gas pipeline by El Paso Corp. will carry Rockies Natural gas from Wyoming to Malin, on Oregon’s border with California.
The company cut the ribbon on the Ruby Pipeline this week.
The $3.5 billion project, which started shipments in late July, opens at a time when demand growth and prices have collapsed from the heady levels when it was conceived. In the short term at least, that’s likely to keep gas shipments well below the pipe’s capacity of 1.5 billion cubic feet of gas per day, and crimp profits accordingly.
Company officials stress it’s a long-term investment. Moreover, ship or pay contracts in place cover more than 70 percent of the pipe’s capacity, so the company gets paid regardless.
“Ruby is the right pipeline at the right time,” said El Paso spokesman Richard Wheatley. “Competing pipeline proposals did not move forward… If you research the natural gas resource base for the Rockies, it is huge. The additional capacity is definitely needed now and in the future.”
Read more at OregonLive.com.
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