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Wyoming methane producers hurting because of pipeline capacity
14 November 2001 , 09:18371
The lack of pipelines to move coal bed methane out of state is hurting producers, Trib.com informs.
"Gas pipelines are full, so producers have to take a lower price," Wyoming Oil and Gas Conservation Commission director Don Likwartz said.
Constrained pipeline capacity leads to producers underbidding and competing with one another to obtain space on the pipeline, said William Trapmann, a pricing specialist with the federal Energy Information Administration.
"Wyoming's success in producing substantial volumes of gas is a factor in bringing the prices down," he said.
Compared to producers in other parts of the country, Wyoming drillers are receiving as much as $1 less per thousand cubic feet, or about 30 percent.
James Tobin, a natural gas pipeline specialist with the Energy Information Administration, said that some of the major interstate pipelines out of Wyoming have either been expanded or will expand, but such projects often take longer because of extra required paperwork.
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