Registration Underway for 2012 NGA Sales & Marketing Conference
NGA's Annual Sales & Marketing Conference will be held March 13-14, 2012 at the Renaissance Hotel in Providence, RI. Sessions will address such topics as the regional supply and demand outlook, the state of the economy, natural gas vehicles, and sales and marketing strategies. Look for more info on NGA's web site:
http://www.northeastgas.org/index.php/events/sales-a-marketing-conference
Fortis to Acquire CH Energy Group
On February 21, CH Energy Group, Inc. announced that it has entered into a definitive merger agreement with Fortis Inc., (TSX:FTS), the largest investor-owned distribution utility in Canada, under which Fortis will acquire CH Energy Group for an aggregate purchase price of approximately U.S. $1.5 billion, including the assumption of approximately U.S. $500 million of debt. CH Energy Group, Inc. is an energy delivery company headquartered in Poughkeepsie, NY. Its regulated transmission and distribution subsidiary - Central Hudson Gas & Electric Corporation - serves approximately 300,000 electric and about 75,000 natural gas customers in eight counties of New York State's Mid-Hudson River Valley, delivering natural gas and electricity in a 2,600-square-mile service territory that extends north from the suburbs of metropolitan New York City to the Capital District at Albany. CH Energy Group also operates Central Hudson Enterprises Corporation (CHEC), a non-regulated subsidiary composed primarily of Griffith Energy Services, which supplies petroleum products and related services to approximately 56,000 customers in the Mid-Atlantic Region. Subject to regulatory approvals and other customary closing conditions, the transaction is expected to close in the first quarter of 2013. The transaction is conditioned upon, among other things, approval by the holders of a majority of the outstanding shares of CH Energy Group; approval by the New York State Public Service Commission and the Federal Energy Regulatory Commission; and the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.
FERC Opens Docket on Natural Gas-Electric Market Coordination
On February 15, the Federal Energy Regulatory Commission (FERC) opened Docket No. AD12-12-000 regarding "coordination between natural gas and electricity markets." The FERC noted that "the natural gas and electricity industries provide a service that is critical to the health and safety of the nation. Since natural gas is expected to be relied on much more heavily in electricity generation, the interdependence of these industries merits careful attention." Comments are due to the FERC by March 30, 2012.
Distrigas LNG Imports in 2011 Represented Nearly 40% of U.S. Total
The Office of Fossil Energy/Natural Gas Regulatory Activities, part of the U.S. Department of Energy, has released 2011 totals for imports of liquefied natural gas (LNG) into the U.S. Total U.S. imports were 349 billion cubic feet (Bcf), compared to 431 in 2010. The Distrigas facility in Everett, MA imported 135 Bcf, about 39% of the U.S. total.
Williams Announces Marcellus Pipeline Project, "Constitution Pipeline"
On February 21, Williams Partners announced a new interstate gas pipeline joint venture with Cabot Oil & Gas Corporation. The new 120-mile Constitution Pipeline will connect Williams Partners' gathering system in Susquehanna County, PA, to the Iroquois Gas Transmission and Tennessee Gas Pipeline systems in Schoharie County, NY. Williams Partners will own 75 percent of Constitution Pipeline and, through its affiliates, will provide construction, operation and maintenance services for the new pipeline. Cabot will own the remaining 25 percent. The new pipeline will initially be designed to transport at least 500,000 dekatherms per day of Cabot's Marcellus production, but will be expandable to meet growing demand for takeaway capacity in northeast Pennsylvania. Williams Partners also has completed the acquisition of the Laser Northeast Gathering System and other midstream businesses from Delphi Midstream Partners, LLC. The original acquisition along with additional pipeline construction was funded with $329 million in cash and approximately 7.5 million Williams Partners units.
U.S. EIA Releases Updated Short-Term Energy Outlook
On February 7, the U.S. Energy Information Administration (EIA) released its updated "Short-Term Energy Outlook." The report is online at www.eia.gov. Among the observations:
- "EIA expects that natural gas consumption will average 68.5 billion cubic feet per day (Bcf/d) in 2012, an increase of 1.6 Bcf/d (2.4 percent) from 2011. Consumption increases in all sectors, with the largest volume increase (1.2 Bcf/d) coming from the electric power sector."
- "EIA expects the winter heating season will end March 31 with inventories over 2,000 Bcf, and inventory levels at the end of October 2012 and 2013 are expected to set new record highs as well."
- "Natural gas spot prices averaged $2.67 per MMBtu at the Henry Hub in January 2012, down $0.50 per MMBtu from the December 2011 average and the lowest average monthly price since 2002. Abundant storage levels, as well as ample supply, have contributed to the recent low prices. EIA expects the Henry Hub spot price will begin to recover after this winter's inventory draw season ends and will average $3.35 per MMBtu in 2012 and $4.07 per MMBtu in 2013."
Compressed Natural Gas Vehicle Ranks 2nd in "Greenest Vehicle List"
On February 7, the American Council for an Energy-Efficient Economy (ACEEE) released its 14th annual comprehensive environmental rankings for vehicles on the road in the U.S. The Honda Civic compressed natural gas (CNG) vehicle had been ranked #1 for 8 years in a row, but this year it comes in 2nd. In first place is the Mitsubishi i-MIEV battery electric vehicle. Tied for 2nd place with the Honda Civic is the Nissan Leaf. Look for more info here: http://www.aceee.org/press/2012/02/electric-car-tops-greenest-vehicle-l
Maine Natural Gas Proposes New Pipeline to Serve Augusta
Maine Natural Gas (MNG) announced on January 30 that it has begun discussions with potential large customers for the development of a natural gas distribution system to serve Augusta, Maine. The first phase of the project would serve customers in the city's east side. The line will tap into an existing interstate pipeline in Windsor and run approximately 10 miles along Route 17 (Eastern Avenue) to Route 9 (Hospital Street). Maine Natural Gas is a subsidiary of Iberdrola USA, which is also the parent company of Central Maine Power. Depending on discussions with potential customers, MNG will apply for state and local permits this spring, and hopes to begin the first phase of construction to the city's east side this year. MNG's plans include a second phase of construction that would cross the Kennebec and extend along Western Avenue and the Leighton Road to the North Augusta commercial area in 2013. The line will have sufficient capacity for expansion into the surrounding residential areas as well. Following recent expansions to Freeport and Bath, the service to Augusta will be the third expansion of the MNG franchise since 2010.
Remember to Dig Safely and Call Before You Dig
The natural gas industry is dedicated to increasing awareness of safe digging practices across the country. We encourage homeowners and contractors to call 811 before they dig to prevent injuries, property damage and inconvenient outages. For more info, visit www.call811.com/
In addition to the national 811 service, NGA reminds its members - and the general public - that each of the Northeast states has a local "One Call Center." They range from "Call Before You Dig" in Connecticut to "Dig Safely New York" to "One Call New Jersey" to "Dig Safe" in five New England states. NGA has links to all the sites linked through the "Public Awareness" section of its web site, at www.northeastgas.org. Utilize these important resources - be aware - and be safe! |
