Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF, FRA:VD5N) told investors it has cleared a key infrastructure hurdle at its Paradox project in Utah after completing the in-line inspection process on the gas pipeline needed to export production.
The AIM-listed company said the analysis confirmed the pipeline is structurally sound at current operating pressure, with no repairs required and no immediate integrity concerns.
The inspection covered 20.9 miles of pipeline running from its Powerline Road Gas Plant to the Northwest Pipeline, which is operated by Williams Companies. The pipeline is owned and operated by Enbridge, which supervised the evaluation. Zephyr noted that four short sections, totalling 25 feet, have been identified for visual inspection before the pipeline is uprated to the pressure needed to ship Zephyr’s gas.
Completion of the inspection allows the formal regulatory approval process to begin.
Zephyr said it will provide an update on timing to first gas once it receives further guidance from Enbridge on the approval schedule.
Chief executive Colin Harrington added that the result allows the company to “finalise our offtake agreements and advance the farm-out process”, while planning also continues for the gas processing solution, further Paradox wells and asset-level funding opportunities.
