Zephyr Energy has completed an in-line inspection of the 20.9 miles of pipeline connecting its Paradox Basin project in Utah to the Northwest Pipeline — a technical milestone that formally opens the door to regulatory approval for first gas export. The inspection, supervised by Enbridge Inc., confirmed the pipeline is structurally sound, with no repairs required at current operating pressure.
That result clears the way for Enbridge to begin the regulatory process needed to increase pipeline pressure and move Zephyr’s gas to market.
Inspection Completed, Pipeline Confirmed Structurally Sound
The 20.9-mile pipeline runs from Zephyr’s Powerline Road Gas Plant to the Northwest Pipeline, operated by Williams Companies. A technical team under Enbridge’s supervision carried out a detailed evaluation of the in-line inspection results, covering every segment of that route.
The analysis confirmed the pipeline is structurally sound at its current operating pressure. No repairs are required, and no immediate integrity concerns were identified. Four short sections — totaling just 25 feet — were flagged for visual inspection before pressure can be increased, though Enbridge considers these routine and doesn’t view them as a risk to achieving first gas export, even if any section ultimately requires a repair.
Why the ILI Was Required Before Gas Can Flow
The pipeline currently operates below the pressure level needed to export gas to the Northwest Pipeline. Getting Zephyr’s gas to market requires an uprated operating pressure — and that increase demands regulatory approval.
Regulators can’t be approached for that approval until the ILI process is complete and its results have been validated. That’s precisely what has now happened. Enbridge, as owner and operator of the pipeline, supervised the full technical evaluation. Zephyr describes the ILI completion as a vital prerequisite — without it, the entire regulatory pathway remained closed. The milestone doesn’t guarantee a timeline, but it removes what had been a structural barrier to moving forward.
Regulatory Process Now Underway Alongside Other Operational Steps
With the ILI results validated, the regulatory approval process to increase pipeline operating pressure has formally begun. That process runs through Enbridge, and Zephyr has said it will provide a timing update on first gas once it receives further guidance from the company on the regulatory schedule.
Other operational work has continued in parallel. Piping and mechanical upgrades needed to transport Zephyr’s gas to market are ongoing. On Zephyr’s side, the company and its third-party infrastructure consultants are finalizing the design and initial capacity of the gas processing solution — while planning for additional Paradox project wells runs alongside detailed formal discussions related to asset-level funding opportunities, a signal that the project’s capital structure is being actively shaped.
Broader Implications for Farm-Out and Offtake Agreements
The positive ILI results carry weight beyond the technical and regulatory process. Zephyr believes they’ll have a further positive impact on its farm-out process and hydrocarbon marketing efforts, both of which have advanced significantly in recent months.
CEO Colin Harrington was direct about what the milestone enables. “With the pipeline integrity largely confirmed, we can now finalize our offtake agreements and advance the farm-out process,” he said, adding that updates on both would follow as separate milestones. Offtake agreements — contracts that commit buyers to purchasing gas output — are easier to finalize when infrastructure risk is reduced. A structurally confirmed pipeline, with a regulatory process now formally underway, strengthens Zephyr’s negotiating position considerably.
Updates on offtake agreements and the farm-out process are expected to be announced independently as each reaches completion.
What This Means for the Paradox Project
The takeaways here are straightforward. Zephyr Energy has completed the in-line inspection of its Utah gas pipeline, and the pipeline is structurally sound at current pressure. Four minor sections require visual inspection before pressure can be increased, but Enbridge doesn’t consider these a risk to first gas export.
The regulatory approval process to increase operating pressure has now formally started. Enbridge continues mechanical upgrades while Zephyr finalizes its gas processing design and plans additional well drilling. A timing update on first gas will come once Enbridge provides further guidance on the regulatory schedule, with separate updates on offtake agreements and the farm-out process also expected to follow. For a project building toward first gas export, this inspection result is a concrete step forward — not a finish line, but a gate that’s now open.
