The pipeline will begin at the Opal Hub in Wyoming and terminate at the Malin, Oregon, interconnect near California’s northern border.

El Paso Corporation said that it was in discussions with other prospective shippers and is expected to announce a formal open season. The Ruby pipeline is anticipated to be in service in the first quarter of 2011 after receiving regulatory approvals, and obtaining necessary customer commitments.

Roy Kuga, vice president of energy supply at Pacific Gas and Electric Company (PG&E), said: This agreement for transportation service on the Ruby pipeline will help ensure that PG&E customers will have a long term, reliable source of natural gas supplies for their homes, businesses and new, efficient natural gas power plants that are currently under development.