The company behind one of the largest natural gas plants in the world says it will open a new gas pipeline that will connect with a natural gas pipeline system in the U.S. and Europe.
A natural gas utility that operates in more than 100 states has announced it will build a new natural gas transmission and distribution line from the site near the small town of Eureka, California, in the state’s western Sierra Nevada mountains.
The new pipeline will run north and south along the state-owned Pacific Coast Highway, connecting with a pipeline system that extends through California, Arizona, Nevada and Oregon, the company said in a statement.
The $1.3 billion pipeline, which will provide natural gas to the Pacific Coast from Eurekas West and East terminals, is expected to begin construction in late 2018.
It will provide an average of 9.6 million bpd of natural gas annually to the California grid.
California officials have long complained that natural gas exports have not been competitive with other natural gas imports and have said the new pipeline would undercut the state.
However, the pipeline will not include the California pipeline that currently connects with the Southern California Gas Co. (SGC) Northern California natural gas export terminal.
California officials also want the pipeline to be built as part of a new regional natural gas project, the Southern Gas Pipeline, which is also located in the Mojave Desert.
Eureka’s $1 million natural gas business is one of California’s most successful.
In 2013, Eurekas sales jumped by more than a third from the year before to $6.9 billion, and its annual sales are forecast to be $1,200 million for the year.
The company announced its new pipeline on its website, which says it is “a state-of-the-art natural gas distribution system that will help to reduce greenhouse gas emissions, increase fuel efficiency and reduce the cost of energy for our customers.”
It also says the pipeline’s “construction is expected in late 2019.”
Euromonitor Energy, which tracks natural gas prices, expects the pipeline project to add $500 million to Eurekinas annual revenue in 2019.