What's New at NGA?

January 23, 2020
Important Gas Safety Awareness Information
NGA has an extensive information section on its web site addressing the important issue of natural gas safety. Learn more here about safe operations of natural gas:

U.S. Senate Approves USMCA Trade Agreement
On January 16, the U.S. Senate voted by an 89-10 margin to approve the updated NAFTA trade agreement, the "United States-Mexico-Canada Agreement." The bill was approved by the U.S. House of Representatives in December. The legislation now goes to President Trump for his signature. Canada's Parliament is expected to take up its authorization process for the new agreement next week; the agreement has already been approved by Mexico.

Corning Natural Gas Acquires Full Ownership of Leatherstocking Gas & Pipeline
On January 9, Corning Natural Gas Holding Corporation (OTC: CNIG) announced the signing of a term sheet to purchase Mirabito Regulated Industries' 50% ownership interest in Leatherstocking Gas Company and Leatherstocking Pipeline Company. When this purchase is completed, subject to Pennsylvania regulatory approval, Corning Natural Gas will own 100% of Leatherstocking's Pennsylvania assets. A new joint venture owned equally by Corning Natural Gas Holding Corporation and Mirabito Regulated Industries will own Leatherstocking's New York State assets. CEO Mike German stated, "The company believes this purchase will enhance our subsidiary holdings and allow for further system growth in our Pennsylvania franchise territories. It will also reduce administrative overhead and streamline management of our utility subsidiaries."

NGA & SGA Presenting Supply Chain Management Conference in February
NGA is pleased to be a co-sponsor of an upcoming conference on Supply Chain Management. The conference is being organized by the Southern Gas Association (SGA) and will be held February 26-28, 2020 in Lost Pines, TX. The conference will bring together supply chain professionals from natural gas midstream, pipeline, and distribution companies with businesses that provide goods and services to the industry. Educational sessions will focus on strategic supply chain and project development challenges impacting natural gas operators. Look for further information online:

NGA's 64th Annual Gas Operations School & Exhibit is June 2-5
NGA's 64th Annual Gas Operations School & Exhibit will be held June 2-5, 2020 at Bryant University in Smithfield, RI. The 2-day exhibit for industry vendors is already fully subscribed. Look for more information on NGA's web site: http://www.northeastgas.org/gasops_exhibit_reg.php

U.S. EIA Releases Updated Short-Term Energy Outlook
On January 14, the U.S. Energy Information Administration (EIA) released its updated "Short-Term Energy Outlook." Among the observations are:
  • "U.S. dry natural gas production set a new record in 2019, averaging 92.0 billion cubic feet per day (Bcf/d). EIA forecasts dry natural gas production will rise to 94.7 Bcf/d in 2020 and then decline to 94.1 Bcf/d in 2021."
  • "EIA forecasts that Henry Hub natural gas spot prices will average $2.33 per million British thermal units (MMBtu) in 2020, down from $2.57/MMBtu in 2019. EIA expects that natural gas prices will then increase in 2021, reaching an annual average of $2.54/MMBtu."
  • "EIA expects the share of U.S. total utility-scale electricity generation from natural gas-fired power plants will remain relatively steady, it was 37% in 2019, and we forecast it will be 38% in 2020 and 37% in 2021. Electricity generation from renewable energy sources rises from a share of 17% last year to 19% in 2020 and 22% in 2021."
  • "After decreasing by 2.1% in 2019, EIA forecasts that energy-related carbon dioxide (CO2) emissions will decrease by 2.0% in 2020 and by 1.5% in 2021."

Look for further details online: http://www.eia.gov/forecasts/steo/

Williams Completes Gateway Expansion Project Ahead of Schedule to Help Serve Growing Demand for Natural Gas in Northeastern U.S.
On December 31, Williams (NYSE: WMB) announced that it has successfully placed into full service its Gateway Expansion Project - approximately 11 months ahead of schedule - to meet growing natural gas demand for New Jersey tri-state area consumers in time for the 2019-2020 winter heating season. The Gateway Expansion Project is an expansion of the existing Transco pipeline system, providing 65,000 dekatherms per day of incremental firm transportation capacity to serve PSEG Power, LLC and UGI Energy Services, LLC. Expedited project execution and construction in close coordination with Williams' customers contributed to the early in-service date. The project provides gas supply capacity to meet the daily home heating, hot water and cooking needs of about 280,000 homes. This is equivalent to removing approximately 590,000 metric tons per year of greenhouse gas emissions as a result of converting heating oil to natural gas. Switching to natural gas is estimated to provide savings of $1,460 per year per household compared to heating oil. Construction on the Gateway Expansion Project began in early 2019, with an original in-service projection of November 2020. With this expansion, the Transco pipeline's system-design capacity is increased to 17.3 million dekatherms per day. The system includes approximately 10,000 miles of pipeline between South Texas and New York City. Look for further details online:

U.S. HHS Releases Low-Income Home Energy Heating Assistance Funding for States; Northeast States Receiving Around $900 Million in Total
On November 1, the Office of Community Services (OCS), Division of Energy Assistance (DEA), of the U.S. Department of Health & Human Services (HHS) announced the initial release of approximately $3.3 billion of Federal Fiscal Year (FY) 2020 regular block grant funding to LIHEAP grantees. The Low Income Home Energy Assistance Program (LIHEAP) helps keep families safe and healthy through initiatives that assist families with energy costs. The 9 Northeast states are receiving $905.6 million of the total allotment, as follows: CT, $62.3 million; ME, $36.1 million; MA, $114.2 million; NH, $24.7 million; NJ, $108 million; NY, $338.5 million; PA, $181.8 million; RI, $21.5 million; and VT, $18.5 million. Further information can be found at:

FERC Issues Certificate for Adelphia Gateway Project
On December 19, the Federal Energy Regulatory Commission (FERC) issued a Certificate of Public Convenience and Necessity for the Adelphia Gateway project and affirmed the need for reliable pipeline infrastructure to serve constrained markets. "We are pleased FERC approved the Adelphia Gateway project and issued a Certificate of Public Convenience and Necessity," said Steve Westhoven, President and Chief Executive Officer of New Jersey Resources, the parent company of Adelphia Gateway. "This is a critical next step in our efforts to provide clean, low-cost natural gas to customers in the Greater Philadelphia region." The Adelphia Gateway project will convert 50 miles of an existing 84-mile pipeline from oil to natural gas. The northern 34 miles of the pipeline were previously converted to deliver natural gas in 1996. After the purchase of Interstate Energy Company and the existing pipeline from Talen Generation, LLC are finalized, the northern zone will continue to operate to serve two natural gas-fired generation facilities in Lower Mount Bethel Township, PA. Once all the necessary regulatory approvals are obtained, work to convert the lower 50 miles of the pipeline from oil to natural gas will begin.

NGA and GTI Release Interconnect Guide for Renewable Natural Gas in New York State
On September 16, 2019, NGA and GTI released a report called: "Interconnect Guide for Renewable Natural Gas in New York State." The report was sponsored by and developed in coordination with several New York State natural gas utilities. The guidance document provides a framework and technical guidance by which all parties - including project developers and the local gas utility - can work together utilizing common core principles and a rigorous technical framework to facilitate maximizing the acceptance and introduction of RNG into the natural gas pipeline network. While developed for New York State, this report provides a guideline for RNG pipeline interconnections that will be applicable and of value throughout the U.S. and Canada. The report can be found on the NGA Publications page: