Ahead

Equitrans LP, a subsidiary of Pittsburgh-based EQT Corp., Wednesday said it has gotten the go-ahead from FERC to begin construction on a new pipeline in Pennsylvania and West Virginia that will provide additional takeaway capacity for Marcellus Shale gas producers.

The Federal Energy Regulatory Commission has given Florida Gas Transmission the go-ahead to begin service on its Mobile Bay Lateral Extension, allowing it to transport regasified liquefied natural gas (LNG) from a new LNG import terminal in Mississippi. The nine-mile extension would connect the Gulf LNG Clean Energy terminal facilities in south Pascagoula, AL, with the existing Mobile Bay Lateral in Mobile County, AL. The extension facilities would clear the way for the delivery of 342,610 MMBtu/d of regasified LNG from the LNG plant to the gas-hungry market in the Sunshine State. The 1.3 Bcf/d LNG terminal began the decommissioning process in June and is expected to be officially up and running in October. The terminal is owned by partners El Paso Corp. (50%), Crest Group (30%) and Angolan national oil company Sonangol (20%).

The California Energy Commission (CEC) is moving ahead with considering a new 300 MW natural gas-fired peaking generation plant adjacent to an existing 600 MW baseload gas-fired plant in Otay Mesa, south of San Diego near the international border. Pio Pico Energy Center is indicative of a move away from the coastal power plant locations in the state and use of sea water for cooling, which is now being phased out. Pio Pico is a revised project on a new site following the withdrawal of an earlier project in the City of Chula Vista, which is losing an existing 600 MW gas-fired baseload plant along the coast due to a redevelopment by the city and Port of San Diego. The CEC will hold a workshop at the Chula Vista City Hall Wednesday to discuss the latest proposal to site a new gas-fired peaking plant adjacent to Calpine Corp.’s Otay Mesa Energy Center, which started commercial operations nearly two years ago under a 10-year tolling agreement with San Diego Gas and Electric Co.

DCP Midstream is moving ahead with the Sand Hills Pipeline to carry natural gas liquids (NGL) from the Permian Basin and Eagle Ford Shale to markets along the Gulf Coast.

September natural gas managed a modest gain Wednesday as traders positioned themselves ahead of the weekly inventory report. For every trader anxious to cover a short position there seemed to be another willing initiate a new sale. At the close September had risen nine-tenths of a cent to $4.003 and October added nine-tenths of a cent as well to $4.024. September crude oil rebounded from steep losses in the last two sessions, adding $3.59 to $82.89/bbl.

Even in what continues to be a weak economic recovery, Bellevue, WA-based Puget Sound Energy (PSE) said Monday it is moving ahead with an all-source request for proposals (RFP) for new long-term power supplies to come online over the 2012 to 2015 period. Natural gas-fired generation is very much in the mix of bids PSE is seeking, the utility told state regulators in seeking approval for the RFP.

Calling newly proposed air emission standards to be imposed on the oil and gas industry an “overreach,” industry groups on Friday continued to lobby the U.S. Environmental Protection Agency (EPA) to rethink its plans. In fact, the Marcellus Shale Coalition (MSC) warned that the standards could stifle natural gas production, which could promote the use of other less-clean energy sources.

FERC Wednesday gave El Paso Corp.’s Ruby Pipeline the go-ahead to begin service on the 680-mile, 42-inch diameter line that will deliver Rockies natural gas to West Coast markets.

El Paso Corp.’s Ruby Pipeline, which will transport Rockies natural gas to West Coast markets, has asked FERC for the go-ahead to place the new long-haul pipeline into service by the end of the month.