Magnum energy planning Permian to western US gas pipeline

By Magnum Energy Midstream Holdings | June 29, 2018

Western U.S. energy markets are currently undergoing a significant paradigm shift. This paradigm shift is being driven by several factors, including aggressive solar and wind capacity development in the Western Interconnection, increasingly tighter pipeline balancing requirements, long-term reliability issues with existing infrastructure, hydroelectric uncertainty, along with coal and nuclear retirements. Additionally, as producers of Rockies natural gas seek new domestic and international markets, including potential West Coast LNG exports and exports to Mexico, the need for strategically located deliverability options is becoming increasingly important. True bidirectional, intra-day, no-notice, hourly load following, peak hour supply reliability and traditional storage and transportation service, will be available to meet the current and future hourly demands of the Western Energy Corridor. In short, The WEST Header Project is being designed to function as a true header pipeline. 

"Most traditional natural gas pipeline infrastructure projects have been designed to flow unidirectionally, from supply point to end-user. Historically single directional flows worked well for traditional 24-hour ratable gas deliveries.  With the introduction of intermittent renewable energy sources, the need for strategically located natural gas infrastructure to provide intra-day flexibility has become increasingly important. By utilizing multiple HDMC salt caverns for gas storage and large capacity pipe for natural gas transportation, The WEST Header Project is being designed with increased flexibility of gas flows in mind," said Kevin Holder, executive vice president of Magnum Energy Midstream.

"In fact, The WEST Header Project can be described as an environmentally friendly pipeline project that further enables the development of intermittent renewable energy resources by providing a 'shock absorber' or 'battery,' allowing for intraday flexibility in managing the growing 'duck curve.'  Additionally, this project opens new markets in need of incremental gas supplies including West Coast LNG exports and Mexico's developing power generation load," Holder added. 

The West Header project:

The WEST Header Project is being designed to maximize 40,000,000 Dth of High Deliverability, Multi-Cycle ("HDMC") salt cavern storage (currently FERC certificated and under development by Magnum Gas Storage (MGS)) near Delta, Utah. The proposed WEST Header Project will provide access to prolific natural gas supplies at or near the Opal Hub in Wyoming, Goshen Hub near Salt Lake City, Utah, and Permian Basin supplies flowing westbound to locations at or near Ehrenberg, Arizona.

The WEST Header Project anticipates allowing for receipts/deliveries directly into the Salt Lake City Valley at or near the Opal Hub, the Goshen Hub, the Las Vegas, Nevada, market, the Southern California market, and Phoenix/Tucson, Arizona, market (through Needles/Topock/Blythe/Ehrenberg), as well as potential international exports to Mexico at Yuma, Arizona, and West Coast LNG exports, including via Energia Costa Azul near Ensenada, Baja California, Mexico.