Joint-venture eyes Oregon pipeline

Northwestern Natural Gas Co. and TransCanada have formed a joint-venture to develop a new gas line to serve Oregon and other western U.S. markets.

Palomar Gas Transmission has been created to develop, design, permit, build and operate the Palomar pipeline, which could — if an LNG terminal is constructed on the Columbia River — cover 220 miles.

Initial plans involve a 110-mile eastern section of the pipeline, with capacity of 100 million cubic feet per day, connecting the existing GTN system in north-central Oregon with Northwestern Natural’s distribution system near Molalla, 30 miles southeast of Portland. The in-service date is 2011.

The first phase will cost up to $350 million, increasing to as much as $700 million if the full 220- mile pipeline goes ahead.

That depends on whether NorthernStar Natural Gas, developer of the proposed Braidwood Landing LNG terminal on the Columbia, decides to use capacity on Palomar.

Northwestern Natural has also struck a deal with Palomar Gas Transmission for another 100 million cubic feet per day on the LNG section.

—Gary Park