RE: NewsIt looks like from my eyeball that they will need 7 miles of pipe. Im assuming they will use 4" pipe because they will use a portion of the pipe to bring the deeper Willow gas project to market at a later date.
so 7*$50000 a line mile would give $380,000 for pipe to connect to the Williams pipeline (im using Canadian costs - im sure it will be cheaper by a long way in the USLOL!) And add on another $100,000 for a compression unit.
So my ballpark figure for tie-in is around $500K. I am assuming this gas is dry. They will need to strip out the liquids from the Willow gas before they put in the sales pipe.
5mmcf/d will give an annual revenue of over $6mill to the project PXM has 50% remember bases on a $3.50 US price.
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This project is very economic. BUK ahs jumped a bit today, maybe afew othere are beginning to realise this too.
Bigbadun'