MoBay Storage Hub LLC, an affiliate of Falcon Gas Storage Co. Inc., received an order from the Federal Energy Regulatory Commission (FERC), which amended a 2006 certificate, to increase the total capacity of its storage facilities in South Mobile Bay County, AL, by 3.70 Bcf to 86.74 Bcf, of which 59.61 Bcf will be working capacity [CP06-398]. MoBay proposes to install nine injection and withdrawal wells in addition to the 21 wells that already exist. Two of the wells will be installed at new offshore locations and seven at previously approved well caisson structure locations, the order said. All of the new wells will be within the North Dauphin Island storage reservoir. FERC also approved MoBay’s request for market-based rate approval for firm and interruptible storage, hub and wheeling services.

The Federal Energy Regulatory Commission (FERC) has issued a certificate to Southern Star Central Gas Pipeline Inc. to expand its storage capabilities at its Elk City storage field in Kansas [CP10-2]. The order raises the total capacity of the Elk City storage field by 2.6 Bcf to 33.3 Bcf, comprising 10.4 Bcf of working gas and 22.9 Bcf of base gas. Southern Star said a recent study by Netherland, Sewell & Associates Inc. concluded that the total capacity of the Elk City storage field is 33.3 Bcf, which was 2.6 Bcf greater than the currently certificated maximum capacity. It proposed offering the entire 2.6 Bcf as working gas capacity and converting 1.4 Bcf of its base gas to working gas, which would have brought the total working gas capacity to 11.8 Bcf. However, FERC denied Southern Star’s request to convert the 1.4 Bcf base gas to working gas, saying it could create a potential long-term decrease in the capacity of the storage field. The agency’s rejection would not preclude the company from filing an application to amend its certificate at a later time, the Commission said. FERC approved Southern Star’s request for market-based rate authority for storage services, subject to conditions.

Enterprise Products Partners LP (EPE), Duncan Energy Partners LP (DEP) and Enterprise GP Holdings LP (EPGP) realigned the boards of the respective general partners to strengthen corporate governance policies. The majority of each board now is composed of nonmanagement directors. The EPGP board is to be helmed by CEO and President Michael A. Creel, Executive Vice President (EVP) A.J. “Jim” Teague and three nonmanagement directors. The DEP board is now composed of President and CEO W. Randall Fowler and four nonmanagement directors. EPE is now run by President and CEO Ralph S. Cunningham, EVP Richard H. Bachmann and five nonmanagement directors. The changes to the boards do not impact the business units’ structures or their strategic focuses, EPE said.

Kinder Morgan Energy Partners LP (KMP) has completed its $921 million cash purchase of a half-stake in Petrohawk Energy Corp.‘s natural gas gathering and treating business in the Haynesville Shale (see NGI, April 19). The joint venture, to be named KinderHawk Field Services LLC, ultimately is expected to have about 2 Bcf/d of mainline throughput capacity. Petrohawk is to operate the business during a short period, after which KinderHawk will assume operations.

Cheniere Energy Inc. has closed the sale of its 30% limited partner interest in Freeport LNG Development LP for net proceeds of approximately $104 million to ZHA FLNG Purchaser LLC, an entity formed by Zachry American Infrastructure LLC and Hastings Funds Management USA Inc. on behalf of institutional investors, Cheniere said. Net proceeds are to be used to pay down a portion of the $400 million, 9.75% term loan held by a Cheniere subsidiary, the company said. The transaction is in line with Cheniere’s strategy of improving its capital structure and reducing debt.

MDU Resources Group Inc.‘s Williston Basin Interstate Pipeline Co. said it plans to expand through additional compression its natural gas pipeline capacity by approximately 33% in the Bakken production area in northwestern North Dakota, adding up to 30 MMcf/d of capacity for delivery to Northern Border Pipeline. The targeted in-service date is November 2011. Williston Basin’s pipeline runs throughout the Bakken production area in western North Dakota and eastern Montana. Williston Basin completed a major expansion of its system in 2008 and currently transports approximately 90 MMcf/d from 11 Bakken production area receipt points. An open season for the expansion is under way through June 2. Information and documents are at www.wbip.com.

California has expanded its statewide solar initiative, the million solar roofs program now in its fourth year, with a thermal-based component supported by $350 million for residential and business customer rebates. The state’s major retail natural gas and electric utilities are implementing the new part of the California Solar Initiative (CSI). The California Public Utilities Commission (CPUC) said that since May 1 residential customers of Pacific Gas and Electric Co., Southern California Edison Co. and Sempra Energy‘s two utilities, San Diego Gas and Electric Co. and Southern California Gas Co., have been able to seek up to $1,875 in rebates for installing solar water heating systems in single-family homes. CSI was conceived to provide rebates to customers installing solar photovoltaic electric generation systems. CSI-Thermal is the latest addition as part of the state’s “Go Solar California” campaign. Under the thermal program, all systems eligible for rebates are required to be certified by the state’s Solar Rating and Certification Corp. The amounts of the rebates are based on the certification firm’s estimate of each system’s annual energy production.

Minneapolis-based Xcel Energy‘s network of 3.5 million electric and two million natural gas utility customers spread over eight western and Midwest states will not need any new baseload generation plants or new gas infrastructure during the next seven to nine years, CEO Dick Kelly told Xcel’s annual shareholders meeting last Wednesday in Denver. Kelly said upgrades at two Minnesota nuclear generation plants are the only activity in that power sector for Xcel in the next five to 10 years. He didn’t rule out more activity longer term, however. Kelly also made it clear that Xcel is not looking to buy new gas assets.

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