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8/19/08
NGA's Sales and Marketing Training Committee is hosting a one-day "Marketing Seminar" on Tuesday, August 26, 2008, at Blackstone National in Sutton, MA. The program's sessions address: "Natural Gas Pricing - What to Expect for 2008-2009"; "Carbon Footprint - What does it mean for natural gas sales"; and "The Impact of Foreclosures in the Construction Industry." Registration information can be found on NGA's web site www.northeastgas.org or contact Bonnie Ayer at bayer@northeastgas.org or via telephone 781-455-6800 x108.
On September 26-27, 2008, the 6th Annual AltWheels Alternative Transportation and Energy Festival will be held on City Hall Plaza in Boston, MA. It is one of the largest alternative fuel vehicle events in the U.S. Silver Sponsors include National Grid, and NGA is pleased to be a Trail Blazer Sponsor this year. Look for more information at www.altwheels.org.
On August 18, Williams announced that that the Federal Energy Regulatory Commission (FERC) has approved a proposal to expand Williams' Transco natural gas pipeline to serve markets in the northeastern United States. The Sentinel expansion project is designed to increase Transco's firm transportation capacity by 142,000 dekatherms per day. Phase 1 of the expansion will provide 40,000 dekatherms per day as early as Nov. 1, 2008, while Phase 2 will provide 102,000 dekatherms per day by Nov. 1, 2009. The proposal requires adding or replacing approximately 18 miles of pipe at various locations in Pennsylvania and New Jersey, in addition to compressor facility modifications at Transco Station 195 in Delta, Pa.
In recent weeks, several interstate gas transmission companies have announced plans to build connections to bring natural gas from the developing Marcellus Shale formation to the Northeast market. These include:
- On August 4, Texas Eastern Transmission, LP, a subsidiary of Spectra Energy announced a non-binding open season for its Texas Eastern Appalachia to Market (TEAM) expansion program, a proposed expansion to transport emerging Appalachian natural gas production to premium markets in the northeast United States, including Mid-Atlantic and New England states. The TEAM expansion program has a targeted capacity of approximately 300 million cubic feet per day (MMcf/d), but will be scaleable and sized to meet customer needs. The expansion will utilize existing rights of way, wherever possible, which will minimize both project costs and effects on landowners and the environment. The first phase of the scaleable expansion program is targeted to be in service as early as November 1, 2011.
- On August 5, National Fuel Gas Supply Corporation, the Pipeline and Storage segment of National Fuel Gas Company, announced that it is conducting an Open Season for capacity in the Appalachian corridor in southwestern and central Pennsylvania that will provide transportation and storage services to key northeast market interconnects including Ellisburg, Leidy and Corning. The Open Season features a newly proposed pipeline system, the "Appalachian Lateral," to provide much-needed new interstate pipeline infrastructure to move gas supplies produced from the Marcellus Shale and other Appalachian producing horizons to growing northeast markets. This Open Season will also provide shippers the opportunity to access incremental storage capacity of 8.5 billion cubic feet via Supply's planned expansion of certain of its existing underground natural gas storage fields. This storage capacity will be offered in a complementary Open Season in the near future.
- On August 5, Tennessee Gas Pipeline Company, a wholly owned subsidiary of El Paso Corporation, announced the results of a binding open season for its 300 Line Expansion Project. Equitable Energy LLC, a subsidiary of Equitable Energy, executed a binding precedent agreement for a 15-year term and was awarded 300,000 Dth/d, which represents 100 percent of the project's capacity. The project links Equitable's Appalachian production to northeast markets. The expansion facilities will consist of approximately 125 miles of 30-inch pipe loop and approximately 46,000 horsepower of additional compression facilities to be constructed in Tennessee's existing pipeline corridor in Pennsylvania and New Jersey. Tennessee has entered into a fixed price agreement to lock in its pipe costs. Construction of the project is subject to regulatory approval from the Federal Energy Regulatory Commission ("FERC") and other agencies. Tennessee plans to file its certificate application with the FERC during the second quarter of 2009, with phased construction anticipated during 2010 and 2011, pending receipt of the necessary regulatory approvals for the project.
- On August 13, NiSource Inc. unit Columbia Gas Transmission Corp. and MarkWest Energy Partners, L.P. announced their intention to jointly develop several natural gas gathering and processing projects to support increased production volumes in the Appalachian Basin. Columbia Gas and MarkWest are in discussions with several interested natural gas producers regarding plans to provide new gathering and gas processing services in association with Columbia Gas' existing Majorsville, WV compressor station, which serves the northern panhandle area of West Virginia and western Pennsylvania. Several existing Columbia Gas pipelines in Washington and Greene counties in Pennsylvania and Marshall and Wetzel counties in West Virginia would serve as the backbone of the gathering system connecting with a proposed MarkWest processing plant at Majorsville. MarkWest could offer processing at Majorsville as early as January 2009 and could ramp up the capacity to approximately 100 million cubic feet per day (MMcf/d) by mid 2009 and to over 200 MMcf/d by mid 2010. The gathering capacity would be made available in the near future with access to Columbia Gas' regulated transmission and storage services. A portion of the transmission capacity could be available for service as early as December 2008, with the remaining capacity available by April 2009. Additional expansions of gathering and processing capabilities in the region will be made available as producers expand their drilling activities in the area. Initial primary delivery points from MarkWest's proposed processing facility at Majorsville would be to Columbia Gas and to Spectra subsidiary Texas Eastern Transmission Co. at Windridge, PA.
On July 9, the New England Governors' Conference convened an Energy Summit at the Federal Reserve Bank in Boston to discuss a range of energy issues, including concerns over the high cost of heating fuels for the upcoming winter. The Governors announced that they will be requesting full funding from the U.S. Congress for the Low-Income Home Energy Assistance Program (LIHEAP). The NEGC is chaired by Governor John Baldacci of Maine; Governor Deval Patrick of Massachusetts is the vice chairman.
The Notice of Proposed Rulemaking (NOPR) for the Distribution Integrity Management Program was published on June 25, 2008 by the U.S. DOT's Pipeline and Hazardous Materials Safety Administration (PHMSA). Comments are due September 23, 2008.
NGA will be reviewing the NOPR and filing comments. NGA's Distribution Integrity Management Working Group is in place and has been involved in the regulatory discussions over the past few years, along with AGA and other organizations. NGA will be meeting with its committee members during the summer to address the NOPR, and anticipates developing a Regional Implementation Plan (operators are given 18 months from the date of the issuance of the final rule to develop and implement a written plan). NGA and its committee also will be updating and meeting with state regulatory agency representatives to receive their feedback.
The proposed regulation would require operators to develop and implement written IM programs addressing the following elements:
- Knowledge of infrastructure
- Identification of threats
- Evaluation and prioritization of risks
- Mitigation of risks
- Measurement and monitoring of performance
- Periodic evaluation and improvement
- Reporting of threats.
On July 23, SUEZ LNG NA LLC (SUEZ) announced that construction has begun on its offshore LNG project, Neptune. The first phase of construction, expected to be completed in September 2008, includes the installation of a 13-mile sub-sea pipeline that will connect the Neptune LNG facility with the existing Spectra Energy HubLineSM. The second phase, scheduled to begin in May 2009 and continue into September 2009, includes connection of the pipeline to HubLineSM and installation of the two off-loading buoys for the project. Upon completion, the LNG facility will consist of an unloading buoy system where specially designed vessels will moor, offload their natural gas, and deliver it to customers in Massachusetts and throughout New England. SUEZ also presented $23.5 million in total mitigation payments to the organizations designated by the Commonwealth of Massachusetts at the SUEZ-hosted community celebration in the City of Gloucester. The company thanked the residents of the North Shore, local community groups, federal and state organizations, and elected officials for their help and support throughout the permitting process. Pipeline installation activities for 2008 include: (1) laying the pipeline (consisting of both a natural gas transmission line and a flowline that connects the buoys) on the sea bottom; (2) plowing a sub-sea trench and placing the pipeline in the trench; (3) backfilling the trench. |
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