NGI The Weekly Gas Market Report

Briefs -- California DOC | Colorado Wildfires | Intermountain Gas | Plains Open Season | Tetco Lebanon Extension | Jordan Cove

The California Department of Conservation (DOC) has scheduled workshops in July to discuss stepped up pipeline and idle oil and gas well safety rules as mandated under state laws AB 1420 and AB 2729. The DOC's Division of Oil, Gas and Geothermal Resources plans to discuss draft regulations on July 13 for small-diameter (4-inch or less) pipelines and mapping/data submission requirements for active gas pipelines. The July 14 workshop would focus on idle wells, plugging/abandonment, testing, remediation and securing of inactive wells.

The final two of four lightning-ignited wildfires that threatened some oil and natural gas operations in northwest Colorado have been contained, officials said. As of Friday the Dead Dog fire was 95% contained and the Hunter fire was 100% contained. "Restoring operations at the local oil, gas and coal facilities was a priority for the local officials and the incident management team from the outset," said a spokesperson for the Rocky Mountain Incident Management Team

The Idaho Public Utilities Commission granted Boise, ID-based Intermountain Gas Co. reconsideration of part of its April general rate case decision that authorized a $4.1 million (1.58%) rate increase, compared to the $9.3 million (3.7%) hike sought by the utility. The MDU Resources Group utility challenged the regulators' calculations and methodology on several issues, including affiliate costs for the services provided by the parent company. 

A subsidiary of Plains All American Pipeline LP is conducting an open season through July 17 for committed crude oil pipeline capacity from the Permian Basin's Delaware sub-basin to the Cushing hub in Oklahoma. The pipeline would originate at Conan Station in Loving County, TX. Depending on the results of the open season, committed volumes would move on a combination of new and existing pipelines. Subject to shipper commitments and regulatory approvals, the pipeline could be operational in mid-2019. For information contact Kevin Snodgrass.

The Texas Eastern Transmission LP (Tetco) Lebanon Extension project, which would provide up to 102,000 Dth/d of transport capacity from Uniontown, PA, to delivery points in Tetco's Market Zone M2 in or near Lebanon, OH, will be available for service as early as Aug. 1, three months ahead of schedule, the company said in a FERC filing [CP16-3]. Tetco and project shippers, which have requested service beginning Aug. 1, "are in the process of executing commercial agreements for such early service period," according to the filing. Two associated projects -- Access South and Adair Southwest -- are not expected to be placed into service before Nov. 1, Tetco said. The Access South project would provide up to 320,000 Dth/d of transport capacity from a receipt point in Uniontown to delivery points in Access Area Zone ELA and Market Zone M1 in Attala County, MS;  the Adair Southwest project would provide up to 200,000 Dth/d of transport capacity from Uniontown to delivery points in Market Zone M2 in Adair County, KY, and an interconnection with Columbia Gas Transmission LLC to serve markets in the Midwest.

County officials and economic development advocates from Colorado's natural gas-rich Western Slope are advocating for the long-proposed Jordan Cove liquefied natural gas (LNG) export project in south-central Oregon. Officials met with the Trump administration and officials at the State and Interior departments. TheWest Slope Colorado Oil and Gas Association and the Grand Junction Economic Partnership underscored the potential of Piceance Basin LNG supplies to Pacific Rim markets. Jordan Cove's sponsor Calgary-based Veresen Inc. expects to receive Federal Energy Regulatory Commission approval to proceed with a new application later in 2017.

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