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In an effort to pool Kansas natural gas gathering assets while also looking to produce gas within the state, Saxon Oil Co. Ltd. said Tuesday its Central Kansas Gas Gathering (CKGG) subsidiary has signed a joint venture agreement with Mid Kansas Gas Gathering LLP (MKG) of Wichita, KS.

In a busy meeting Thursday the Pennsylvania Public Utility Commission (PUC) voted to investigate a proposed annual rate increase by Equitable Gas Co. and also unanimously approved the gas cost rate (GCR) increase requests from Valley Energy Inc. and Pike County Light & Power. The commission voted unanimously to investigate Equitable Gas Co.’s $51.9 million (10%) hike that would increase the monthly bill for an average residential natural gas customer using 7.5 Mcf per month from $142.63 a month to $157.14 a month. The PUC said it will assign the case to the office of administrative law judge for a recommended decision. The commission has until March 30, 2009, to make its final decision at a public meeting in Harrisburg. Equitable Gas provides service to approximately 258,000 residential, commercial and industrial customers in Pittsburgh and in portions of Allegheny, Armstrong, Butler, Clarion, Fayette, Green, Indiana, Jefferson, Washington and Westmoreland counties. According to the company, the reason for the increase is to cover rising operating and maintenance expenses, as well as to recover costs of investments in the utility’s plant and investments to improve the quality of service for its customers. On the approved GCR increase requests, the commission approved a 42.1% increase in Valley Energy’s GCR from $7.8865/Mcf to $11.2083/Mcf and a 2.8% increase for Pike County Light & Power from $10.1715 to $10.4550/Mcf. The companies’ new GCRs go into effect Sept. 1.

Southern California Gas extended Saturday’s high-linepack OFO through Sunday before allowing it to expire Monday. The giant LDC also reported beginning replacement Monday of the power head on compressor Unit #5 at its Aliso Canyon storage facility. The work is expected to end Wednesday.

Citing “a significant reduction in primary nominations” through the Meacham Compressor Station, Northwest lifted the Realignment OFO through the station Wednesday. Northwest also said it had ended a Declared Deficiency Period at the Caldwell Compressor Station Tuesday.

July natural gas futures closed higher Wednesday in spite of another losing day for crude oil. Traders also ignored the completion of repairs to the Independence Hub production platform in the Gulf of Mexico and elected to focus on expected warm weather in Midwest and eastern energy markets. At the close of floor trading July futures were up 15.8 cents to $12.379 and August added 14.0 cents to $12.442. July crude oil skidded $2.01 to $122.30/bbl.

Increasing global demand for energy and high prices have created a robust environment for oil and gas producers, but high prices have also driven up the cost of raw materials and impacted refining margins in the downstream sector, Ernst & Young said in a new report.

Increasing global demand for energy and high prices have created a robust environment for oil and gas producers, but high prices have also driven up the cost of raw materials and impacted refining margins in the downstream sector, according to Ernst & Young.

Six natural gas and power groups have asked FERC to consider temporary forbearance or amnesty for energy companies while they struggle to adapt to Commission’s new role as an enforcement agency, as well as to make revisions to its enforcement procedures to dispel industry concerns that FERC is acting as both “judge and jury.”

A subsidiary of El Paso Corp. agreed to acquire a 50% interest in the Gulf LNG Clean Energy Project, a planned liquefied natural gas (LNG) terminal in Pascagoula, MS. An El Paso subsidiary also will operate the terminal and will manage its construction, the company said last week. The terminal is expected to be placed in service in late 2011 at an estimated cost of $1.1 billion.