Zephyr moves closer to first gas at Utah's Paradox project

(WO) — Zephyr Energy has advanced its Paradox basin development in Utah after completing a key pipeline integrity assessment that clears the way for the regulatory approvals needed to begin exporting natural gas from the project.

The company reported the successful completion of an in-line inspection (ILI) of the 20.9-mi pipeline connecting Zephyr's Powerline Road Gas Plant to the Northwest Pipeline system operated by Williams Companies. The pipeline is owned and operated by Enbridge.

According to Zephyr, analysis of the inspection data confirmed the pipeline is structurally sound at its current operating pressure, with no repairs required and no immediate integrity concerns identified.

As part of the process to increase operating pressure for gas exports, four short pipeline sections totaling approximately 25 ft have been identified for routine visual inspection. Enbridge said the work is standard practice and is not expected to impact plans for first gas.

Completion of the inspection allows Zephyr and Enbridge to formally begin the regulatory approval process required to transport gas into the Northwest Pipeline system.

“The successful completion of the ILI process is a major step to ensure significant new natural gas volumes can be safely transported from our field,” said Colin Harrington, CEO of Zephyr Energy.

In parallel with the regulatory process, Enbridge continues infrastructure upgrades needed to support gas transportation from the field. Zephyr said it is also finalizing the design and capacity of its gas processing facilities while advancing plans for additional drilling at the Paradox project.

The company noted that the positive inspection results could further support ongoing farm-out discussions and hydrocarbon marketing efforts.

Zephyr expects to provide additional guidance on the timing of first gas once it receives an updated regulatory schedule from Enbridge.