2005

Washington Gas Light (WGL), which serves metropolitan Washington, DC, has called on FERC to reject the proposed expansion of Dominion Cove Point LP’s liquefied natural gas (LNG) terminal and associated pipeline project until it can be demonstrated at a evidentiary hearing that imported LNG is fully interchangeable with traditional gas and will not negatively impact the utility’s system.

There was considerable activity and noise in both the House and Senate last week to open up additional areas — the federal Outer Continental Shelf (OCS) and the coastal plain of the Arctic National Wildlife Refuge (ANWR) — to oil and natural gas exploration and production. But it still remains to be seen whether this will translate into concrete action by lawmakers this year.

While some industry experts tend to use natural gas futures prices as an aid in predicting realized spot prices at the Henry Hub, a new study from the Energy Information Administration (EIA) found that out month futures prices are “relatively poor predictors” of the Henry Hub spot price that is eventually realized when the contract settles, and even the final futures price for a given contract often does not match the realized average spot cash price.

Alaska Gov. Frank Murkowski said Thursday Natural Resources Commissioner Tom Irwin agreed to quit his job after questioning the legality of the governor’s negotiations with producers on an agreement for a gas pipeline to the Lower 48 states.

EnCana Corp. founder Gwyn Morgan announced that he will step down as CEO and president of the company at the end of the year. Morgan said he will remain executive vice chairman of the company for 2006, working mainly as an advisor for the new president and CEO, Randall K. Eresman, who currently is COO of the company.

Jury selection started Monday in a California Superior Court in San Diego County regarding a class action lawsuit against Sempra Energy and its two major utility affiliates, alleging that they conspired with others back in the pre-western energy crisis late 1990s to drive up wholesale natural gas prices at the California-Arizona border.

In the lessons learned department, personnel from municipal natural gas systems who are pitching in to help out systems damaged by the Gulf Coast hurricanes, have some suggestions about preparedness. For one thing, have a duplicate system map stored somewhere above high water, preferably with another utility system operator; And, if you’re going into unfamiliar territory to help out, take your own water, fuel, food — and a GPS locator because flattened road signs aren’t going to be any help.

The industry has to find a solution soon to the problem of drilling rigs being torn from their moorings and set adrift in the Gulf of Mexico during hurricanes. A football field-sized structure careening through the Gulf can cause billions of dollars in damage to production platforms and subsea pipelines, Doug Krenz, vice president of transportation for Enbridge, said in an interview with NGI last week.

The Federal Energy Regulatory Commission Friday and the Port of Long Beach issued a favorable joint draft environmental impact statement (DEIS) for the controversial liquefied natural gas (LNG) terminal planned for the Port of Long Beach, CA. The California Public Utilities Commission (CPUC) signaled earlier in the week that it is prepared to push FERC for an evidentiary hearing as part of the DEIS review.