Investors drop out of Colorado pipeline project
Aspen, CO Colorado
DENVER ” The credit crunch has prompted some investors to withdraw from construction of a natural gas pipeline in northwestern Colorado.
Enterprise Products Partners and Quicksilver Gas Services have terminated plans for a 50 percent stake in TransCanada’s $2 billion Pathfinder pipeline project. The 673-mile pipeline would run from Colorado to North Dakota where it would link to a major system in the Midwest.
Quicksilver Gas Services, based in Fort Worth, Texas, decided in August that it wouldn’t pursue the project, spokesman Rick Buterbaugh said Tuesday.
“We think it’s a great project,” Buterbaugh said of the pipeline.
Quicksilver Gas Services, though, is exploring other opportunities, he added.
TransCanada, based in Calgary, Alberta, said it’s working with prospective investors to carry out the project.
Enterprise spokesman Rick Rainey told The Denver Post Monday that considering current credit markets, the Houston-based company is pursuing projects with better returns.
Plans call for the pipeline to initially ship 1.2 billion cubic feet of gas per day, with an ultimate capacity of 1.6 billion cubic feet per day. Completion of construction is projected for November 2010.
“I think any pipeline expansion in the next year and a half that has not been committed is going to be a difficult sell in this current credit and price environment,” said John Harpole of Mercator Energy, a Denver-area natural gas consulting compay.
A shortage of pipeline capacity in the Rockies is one of the reasons companies are scaling back drilling in the region.
Support Local Journalism
Support Local Journalism
Readers around Aspen and Snowmass Village make the Aspen Times’ work possible. Your financial contribution supports our efforts to deliver quality, locally relevant journalism.
Now more than ever, your support is critical to help us keep our community informed about the evolving coronavirus pandemic and the impact it is having locally. Every contribution, however large or small, will make a difference.
Each donation will be used exclusively for the development and creation of increased news coverage.
Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.
User Legend: Moderator Trusted User
A vehicle skidded off Frying Pan Road and into Ruedi Reservoir Monday morning. The car occupants were unharmed but the car had to be fished out, according to the Colorado State Patrol.