NGI The Weekly Gas Market Report

Briefs -- SoCalGas | Cheniere MIDSHIP | CNX Midstream | MVP Construction | Linn Energy | LA Storage | Southern Natural Gas Co.

Southern California Gas Co.(SoCalGas) was awarded the Electric Power Research Institute’s Technology Transfer Award for success in demonstrating innovative energy efficiency advances. Implemented at a low-income housing development in Lancaster, CA, the SoCalGas project combined natural gas and electric energy efficiency technologies to achieve a near-zero-net energy status. The team embarked on a retrofit of 30 units at the property, integrating gas, electric and renewable technologies.

FERC staff has completed a draft environmental impact statement (DEIS) for Cheniere Midstream Holdings Inc.'s proposed Midcontinent Supply Header Interstate Pipeline (MIDSHIP) project, concluding that any adverse environmental impacts would be reduced to less-than-significant levels through mitigation efforts [CP17-458]. MIDSHIP would carry 1.4 Bcf/d of natural gas to connect production out of the Anadarko Basin -- namely the STACK (Sooner Trend of the Anadarko Basin, mostly in Canadian and Kingfisher counties) and SCOOP (South Central Oklahoma Oil Province) -- to markets in the Gulf Coast. The Federal Energy Regulatory Commission is accepting comments on the DEIS through April 2.

CNX Resources Corp.plans to drop down the Shirley-Pennsboro System, which gathers Marcellus Shale natural gas in West Virginia, to CNX Midstream Partners LP(CNXM) for $265 million before the end of March. The system gathers gas for CNX across Doddridge, Tyler, Ritchie and Pleasant counties and recently was moving 180 MMcf/d. After it separated from Consol Energy Inc., CNX assumed full ownership of CNXM, formerly Cone Midstream Partners LP, by buying Noble Energy Inc.’s remaining interest in the system. 

The Federal Energy Regulatory Commission has granted Mountain Valley Pipeline LLC’s (MVP) requests to proceed with construction at 103 temporary work spaces, 153 staging areas and access roads, and seven yards in West Virginia and Virginia. The Commission also authorized construction to begin between mileposts 0 and 9.6 in Wetzel County, WV, and between mileposts 198.5 and 210.8 in Giles County, VA. The 300-mile pipeline started preliminary work at sites in West Virginia in January, and has been cleared for more access across 10 West Virginia counties. Other requests to proceed with construction are pending.  The company is also waiting to gain access to condemned properties in Virginia and for some regulatory approvals. The pipeline would move 2 Bcf/d of Appalachian natural gas to Southeast markets. Project sponsors are targeting a 4Q2018 in-service date. 

Houston-based Linn Energy Inc. is selling interest in some oil and gas property in West Texas to an undisclosed buyer for $119.5 million. The estimated 28,000 net acres to be sold had 2017 production of about 6,300 boe/d net and proved developed reserves of 14.4 million boe. Annualized field level cash flow on the properties is about $32 million, while annual general/administrative expenses is $3 million. The sale is expected to be completed by the end of March.

The Federal Energy Regulatory Commission has vacated certificate authorizations previously issued to LA Storage (formerly Liberty Gas Storage) to construct and operate four high-delivery storage caverns, 5.1 miles of 36-inch diameter bidirectional pipeline and a compressor station and meter station in Louisiana’s Calcasieu and Cameron parishes [CP08-454]. The expansion facilities were supposed to be completed within 18 months of the June 2009 approval of the project, but were delayed several times. Upon completion, the three existing caverns would have stored 15.75 Bcf, of which 12.40 Bcf would be working gas and 3.35 Bcf would be base gas. The newly developed cavern would have stored about 8.25 Bcf, or 6.50 Bcf working gas and 1.75 Bcf of base gas.

Southern Natural Gas Co. LLC (SNG) has received from the Federal Energy Regulatory Commission a certificate of public convenience and necessity to construct and operate the Fairburn Expansion project, which calls for building pipelines and associated infrastructure in Georgia [CP17-46]. The $240 million project calls for constructing two pipeline segments, a compressor station and three meter stations in Clayton, Cobb, Fulton Fayette and Monroe counties. It also calls for acquiring an existing pipeline lateral and modifications to two nearby meter stations. The project would provide 343,164 Dth/d of firm transportation capacity to delivery points in SNG Zones 2 and 3. To provide service, SNG would acquire from affiliate Georgia Power Co. the McDonough Lateral, an existing 19.7-mile, 30-inch diameter pipeline, and associated facilities. 

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