Anchor shippers have signed up for about 500,000 Dth/d of incremental capacity on the market path segment of Tennessee Gas Pipeline Co.'s (TGP) Northeast Energy Direct Project (NED) project to serve New England utilities and power generators with Marcellus Shale natural gas (see Daily GPI, Dec. 8, 2014). The market path segment of the project runs from Wright, NY, to Dracut, MA, and beyond and is scalable to 1.2 Bcf/d, or ultimately 2.2 Bcf/d. A project in-service date of November 2018 is planned, the Kinder Morgan Inc. pipeline said. Anchor shippers with binding precedent agreements include National Grid, 186,963 Dth/d; Liberty Utilities, 115,000 Dth/d; Columbia Gas of Massachusetts, 114,300 Dth/d; Connecticut Natural Gas Corp., Southern Connecticut Gas Corp., The Berkshire Gas Co., The City of Westfield Gas & Electric Light Department and others. TGP is continuing to negotiate with potential NED shippers, including electric distribution companies, and expects to announce additional commitments.
An attempt to override President Obama's veto of a bill authorizing construction of the controversial Keystone XL oil pipeline failed to garner enough support in the U.S. Senate on Wednesday. The vote was 62-37, five votes short of the 67 necessary. "At this point, we will continue to press for approval of the Keystone XL pipeline by attaching a similar measure to another must-pass bill, perhaps an energy, transportation or appropriations bill," said Sen. John Hoeven (R-ND), sponsor of S-1, the original bill authorizing Keystone XL. Obama vetoed the bill on Feb. 24 (see Daily GPI, Feb. 24).
Rockies Express Pipeline LLC (REX) has filed an application with the Federal Energy Regulatory Commission (FERC) to switch the Seneca Lateral in Ohio from intrastate to interstate service to allow shippers more flexibility on the East-to-West modification. The lateral delivers up to 600 MMcf/d from a processing plant in Noble County. FERC approval of the plan would no longer burden shippers with requirements under intrastate service such as demonstrating that the gas is being moved for a local distribution company, the application said. Seneca Lateral recently reached full capacity (see Shale Daily, March 2).
Calgary-based Gasfrac Energy Services Inc. has agreed to sell "substantially all" of its assets and technology to an undisclosed third party. Gasfrac filed for protection from creditors in January and received court approval under Canada's Companies' Creditors Arrangement Act to begin the sales process (see Shale Daily, Jan. 28; Jan. 16). Until the sale is completed, Gasfrac would continue to operate under the supervision of its board and a court monitor. The hydraulic fracturing services operator also obtained an extension until April 3 with PNC Bank Canada Branch, its primary secured lender, to forbear from exercising remedies under existing secured loan agreements. "Gasfrac, with the assistance of its employees and professional advisers and under the supervision of the special committee and the monitor, believes it has conducted an effective and transparent competitive sales process," said Chairman Leigh Cassidy. "The board of directors is of the view that this sale transaction represents the best outcome for Gasfrac given current circumstances."
Lithuanian natural gas trading company LITGAS has signed up for U.S. liquefied natural gas (LNG) supply from Cheniere Marketing, a unit of Cheniere Energy Inc. LITGAS is a unit of Lithuanian state-controlled Lietuvos Energiia. The first LNG from the master trade agreement is expected to arrive in Lithuania as early as next year, LITGAS said last week. It did not disclose contract details. The Baltic states consume about 4 billion cubic meters of LNG per year, according to LITGAS, which has 16 nonbinding master trade agreements with companies supplying about half of the world's LNG and also has options to buy natural gas from other Lithuanian importers. Houston-based Cheniere's first U.S. LNG export facility, Sabine Pass, is expected to enter service during the fourth quarter (see Daily GPI, Feb. 25).
A subsidiary of Enable Midstream Partners LP is holding a nonbinding open season through March 19 to expand firm interstate natural gas transportation capacity in Oklahoma. Enable Gas Transmission LLC's expansion of Line AD would provide options from receipt points in the South Central Oklahoma Oil Province, or SCOOP, and Cana-Woodford Shale, Granite Wash and Colony Wash formations. Information on the project and bid forms are available on Enable Midstream Partners’ website.
The Ontario Superior Court of Justice in Toronto on Thursday upheld a claim by Energy Fundamentals Group Inc. (EFG) that it has the option to acquire a 20% interest in Calgary-based Veresen Inc.'s proposed Jordan Cove liquefied natural gas (LNG) project, a claim Veresen disputes. While saying that the court's decision does not materially affect the proposed LNG export project on the Oregon coast and its related Pacific Connector Pipeline, a Veresen spokesperson said the company is reviewing the decision and will consider its options, including an appeal. The dispute centers on a July 27, 2005 letter agreement between EFG and Veresen predecessor company Fort Chicago Energy Partners LP.