The WEST Header Project is the proposed construction of a new approximately 650-mile, large-diameter interstate natural gas pipeline designed to move natural gas bi-directionally between multiple receipt points and multiple delivery points, including storage, throughout multiple states in the Western Energy Corridor. The WEST Header Project is being designed to maximize the 40 BCF of High Deliverability, Multi-Cycle (“HDMC”) salt cavern storage (currently FERC certificated and under development by Magnum Gas Storage (“MGS”)) located 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, UT and Permian Basin supplies flowing westbound to locations at or near Ehrenberg, AZ. 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, NV market, the Southern CA market and Phoenix/Tucson, AZ market (through Needles/Topock/Blythe/Ehrenberg), as well as potential international exports to Mexico at Yuma, AZ and West Coast LNG exports, including via Energia Costa Azul near Ensenada, Baja California, Mexico.
The WEST Header Project, through its FERC approved market rate-based storage tariff and a new proposed FERC pipeline transportation tariff, will offer a wide variety of highly flexible transportation, storage and storage-related services, including:
- Firm Transportation and/or Wheeling Services
- No-Notice Storage including Transportation Services
- Multi-Turn Firm Storage Services
- Firm Hourly Balancing Services
- Load Following Services
- Firm Park and Loan Services
- Enhanced Interruptible & Interruptible Storage and Transportation Services
- Enhanced Interruptible & Interruptible Park and Loan Services
- Enhanced Interruptible & Interruptible Wheeling Services
- Interruptible Hourly Balancing Services
- Interruptible Transportation & Wheeling Services
These services will be particularly well suited to meet the needs of the dynamic energy markets of the Western US, including natural gas-fired electric power generators, natural gas distribution companies, gas producers, gas pipelines, LNG exporters and gas marketers that wish to develop significantly enhanced intra-day market optionality, load following services, hourly balancing services, peak-hour deliverability, supply reliability, avoid imbalance penalties, manage portfolio risks and provide reliable/highly flexible supply and producer services options. Driven by aggressive Renewable Portfolio Standards, a recent Wood Mackenzie study commissioned by the Western Electricity Coordinating Council (“WECC”) establishes solar capacity doubling to 36 GW and wind generating capacity increasing 9 GW by 2026, requiring flexible gas generation sources to act as buffer, thereby increasing volatility in power burn. To support this renewable initiative, up to 13 GW of gas-fired generation capacity may need to be added in the Western Interconnection by 2030. Additionally, recently announced West Coast LNG projects could create the potential for an additional 2,000,000 Dth/day of capacity needed to service these export facilities. Finally, 9 GW of coal plants and 2 GW of nuclear plants are planned for retirements in the Western Interconnection by 2026 creating room for intermittent renewable and gas capacity.