Zephyr Energy (AIM:ZPHR) completed an Enbridge-supervised inline inspection (ILI) of the pipeline serving its Paradox project and has commenced the regulatory approval process to raise operating pressure and export gas to the Northwest Pipeline.
The ILI covered 20.9 miles from Zephyr's Powerline Road Gas Plant to the Williams Companies, Inc.-operated Northwest Pipeline and found the line structurally sound at current system pressure, enabling the company, a technology-led oil and gas developer focused on the Rocky Mountain region, to progress transport approvals.
Analysis identified four short sections totalling 25 feet for visual inspection to confirm integrity at the uprated pressure, inspections Enbridge described as routine and not a material risk to achieving first gas even if a repair were required.
Enbridge is also carrying out piping and mechanical upgrades while Zephyr and third-party infrastructure consultants finalise the design and initial capacity of its gas processing solution and plan additional Paradox wells alongside formal asset-level funding discussions.
Zephyr says the successful ILI will support its farm-out process and hydrocarbon marketing, both of which it reports have advanced significantly in recent months.
"With the pipeline integrity largely confirmed, we can now finalise our offtake agreements and advance the farm-out process," said Colin Harrington, Chief Executive of Zephyr Energy.
Zephyr will provide an update on timing to first gas when it receives further guidance from Enbridge on the regulatory approval schedule.
