PAA Natural Gas Storage LP is holding a nonbinding open season for 2 Bcf of firm gas storage service to be available beginning in the second quarter of 2011 at its Pine Prairie salt cavern facility in Evangeline Parish, LA. PAA also is soliciting interest in firm storage service at Pine Prairie beginning in the second quarter of 2013 in order to assess market demand for additional expansions of the facility. PAA currently has 24 Bcf of working capacity in service at Pine Prairie and an additional 18 Bcf under construction. Pine Prairie is currently permitted for 48 Bcf. For information contact Richard Tomaski at (713) 652-3669, or Ben Reese at (713) 652-3678, or visit www.pineprairieenergycenter.com. The open season will end at 2 p.m. CDT on July 15.

The Federal Energy Regulatory Commission issued a certificate to Wyoming Interstate Co. Ltd. (WIC) to expand its system to transport natural gas supplies in a new westbound direction from the pipeline’s existing Wamsutter Compressor Station in Wyoming to interconnections with Questar Overthrust Pipeline Co. and Rockies Express Pipeline LLC (REX). The 2010 System Enhancement Project would create delivery capabilities at the new Overthrust and REX delivery points of about 285,000 Dth/d, and would also facilitate deliveries to the Opal Hub via capacity held by WIC on the Overthrust pipeline system, according to the order [CP10-13]. The new westbound flow would complement the historic eastbound direction of flow on the WIC mainline. WIC, a pipeline subsidiary of El Paso Corp., said it wants to place the facilities in service by Oct. 31. The capital cost of the project has been pegged at $22.4 million. WIC said 97,500 Dth/d of transportation capacity has been subscribed under firm contracts by two shippers, each for a 10-year term (Pioneer Natural Resources USA Inc. and WIC affiliate Colorado Interstate Gas Co.). The remaining 187,500 Dth/d of east-to-west delivery capacity will be available at Wamsutter for WIC’s existing and new shippers on a primary firm or alternate basis.

The Stripper Well Consortium (SWC), which has transferred technology developed for major energy companies to small, independent oil and gas operators for nine years, was extended to 2015 by the U.S. Department of Energy. An industry-driven consortium initiated in 2000, SWC strives to keep maximize hydrocarbon recovery from stripper wells in an environmentally safe manner. Domestic stripper wells produce less than 10 b/d of oil or 60,000 Mcf/d of gas. However, more than 322,000 stripper gas wells now account for more than 1.7 Tcf of annual production, or 9% of the gas produced in the Lower 48. More than 396,000 stripper oil wells also account for nearly 800,000 b/d, or about 10% of Lower 48 production.

The Kentucky Public Service Commission (PSC) is seeking comment from residential and small-volume commercial customers and others who would be affected by broader retail competition in the state’s natural gas markets. Currently, retail gas service in Kentucky is provided by companies that own and operate local distribution systems (LDC). The wholesale cost of natural gas is unregulated, but must be passed on to consumers on a dollar-for-dollar basis by the state’s LDCs — Atmos Energy Corp., Columbia Gas of Kentucky, Delta Natural Gas Co., Duke Energy Kentucky and Louisville Gas and Electric Co. Only Columbia Gas of Kentucky has implemented a voluntary retail competition program for residential and small commercial customers, according to the PSC. The PSC has scheduled an Oct. 19 hearing in the case and will accept public comment through that day.

Customer concerns have put a planned wood-fueled biomass power plant on hold in Traverse City, MI, prompting Traverse City Light & Power (L&P) to put natural gas at the top of its list to replace an old coal-fired power plant. “We’ve listened to many of our ratepayers tell us they don’t know enough about biomass and some have suggested they are more comfortable with natural gas as a power generation resource, even though natural gas is not a renewable energy,” said L&P Chairman Mike Coco. L&P said its previous goal of achieving 30% of its power from renewable sources by 2020 may fall by the wayside if a gas-fueled option is selected for the replacement power supplies.

©Copyright 2010Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.