NGI The Weekly Gas Market Report

Briefs -- Tokyo Gas, Centrica | Atlantic Coast Pipeline | Texas Eastern Transmission | Majority Rights Protection Act

Tokyo Gas Co. Ltd. and Centrica LNG Co. Ltd. of the United Kingdom have struck an agreement to optimize LNG cargoes that Tokyo gas procures from the United States and those that Centrica acquires in the Asia Pacific region. "For Tokyo Gas...this...achieves the development of an LNG value chain linking the Asia, North America and Europe regions..." the company said Monday in announcing the arrangement. Kentaro Kimoto, general manager of the gas resources department of Tokyo Gas, said, "Through this tie-up with Centrica, which is a major LNG buyer on the Atlantic market, we expect to conduct flexible LNG trading bridging both the Atlantic and the Pacific markets and to bring greater vitality to the LNG market overall." Tokyo has signed up for LNG from the Dominion Cove Point LNG terminal in Maryland.

The Federal Energy Regulatory Commission asked backers of Atlantic Coast Pipeline LLC (ACP) and the related Supply Header Project for detailed information on "all tribal communications" related to the proposed projects. In an environmental information request [CP15-554], the FERC's Office of Energy Projects asked for "a comprehensive table of all tribal communications conducted throughout the project by" ACP and Dominion, which is backing the Supply Header Project and is the majority stakeholder in ACP. The request also asked ACP and Dominion to confirm or otherwise update tables recently provided to FERC that list "archaeological and aboveground historic sites that have been identified in the current area of potential effects."

After months of work, Texas Eastern Transmission LP has restored its Penn-Jersey system to full capacity after it was damaged in an explosion and fire in Westmoreland County, PA, earlier this year. Over the summer, owner Spectra Energy Corp. started an assessment of Penn-Jersey's entire 263-mile stretch between Delmont, PA, and Lambertville, NJ, to inspect its four lines. With the exception of a section near the incident, all pipes have been returned to service. Natural gas is entering the system at another location to make up for the section that's still off line. Spectra said its field investigations uncovered the pipelines in more than 700 locations. A portion of the system exploded and caught fire in April in Southwest Pennsylvania, toppling trees, razing one house, damaging others and severely burning one resident. One line ruptured in what Spectra has attributed to external corrosion near a weld. The company's work included reviewing inspection data, evaluating construction records, performing field investigations and interior and exterior inspections.

A Texas state lawmaker has filed a bill that would "update" the Lone Star State's unitization procedures -- what some call forced pooling -- and bring them in line with those in other top oil-producing states. SB 177, titled the Majority Rights Protection Act and filed by state Sen. Van Taylor (R-Plano), would allow for a super majority of 70% or more of both working and royalty interest owners to enter into a pool in order to proceed with field development for secondary and tertiary recovery operations.

ISSN © 1532-1266

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