Announcement

The midstream sector continued to respond last week to producers’ thirst for natural gas liquids (NGL) profits with the announcement of two Gulf Coast projects to handle growing production and another that would increase transport of Rockies NGLs to the Gulf.

Following Quebec’s announcement in early March that hydraulic fracturing (hydrofracking) would be limited for the next two years, British Columbia officials reassured the public this week that it was a safe practice and would continue in their province.

Florida Gas Transmission’s (FGT) Phase VIII Expansion was placed in service Friday as scheduled, according to Houston-based Southern Union Co. The announcement came one week after the Federal Energy Regulatory Commission (FERC) gave FGT the green light to place into service the remaining facilities associated with the $2.48 expansion to serve gas-fired power generators and utilities in Florida (see Daily GPI, March 28). The project, which FERC approved in November 2009, adds more than 483 miles of pipeline loops, laterals and mainline and installs 213,600 hp of compression at eight existing stations and one new station (see Daily GPI, Nov. 20, 2009). The project also called for FGT to acquire the existing 22.7-mile Martin Lateral from Florida Power & Light Co. (FPL), which will serve power plants in Manatee, Martin, Miami-Dade and Suwannee counties, FL. The Phase VIII Expansion is intended to create 820,000 MMBtu/d of capacity on FGT’s system from Alabama to Florida. The expansion’s Phase I facilities, which involved the construction and operation of facilities to serve FPL’s Manatee Power Plant, went into service in mid-2010. FGT proposes to transport gas to five other shippers: Florida Power Corp./Progress Energy Florida Inc.; Seminole Electric Cooperative Inc.; Tampa Electric Co.; the Orlando Utilities Commission; and the City of Tallahassee.

Following Quebec’s announcement in early March that hydraulic fracturing (hydrofracking) would be limited for the next two years, British Columbia officials reassured the public last week that it was a safe practice and would continue in their province.

While Quebec’s announcement that hydraulic fracturing could continue on a limited basis has divided people in the province, a government official in the neighboring province of New Brunswick said a moratorium on the practice won’t be implemented there.

The abundance of North American natural gas and attractiveness of overseas markets have prompted a second announcement of plans to export liquefied natural gas (LNG) from the Lower 48. Freeport LNG and Macquarie Energy said last week they will develop export capability on the site of Freeport’s existing import terminal in Texas. Macquarie Energy is the North American energy marketing and trading arm of Australia’s Macquarie Group.

The abundance of North American natural gas and attractiveness of overseas markets have prompted a second announcement of plans to export liquefied natural gas (LNG) from the Lower 48. Freeport LNG and Macquarie Energy said Monday they will develop export capability on the site of Freeport’s existing import terminal in Texas. Macquarie Energy is the North American energy marketing and trading arm of Australia’s Macquarie Group.

Growth in natural gas infrastructure services appeared to be the impetus behind General Electric Co.’s (GE) announcement Wednesday that it would pay $3 billion to buy Dresser Inc.

Growth in natural gas infrastructure services appeared to be the impetus behind General Electric Co.’s (GE) announcement last week that it would pay $3 billion to buy Dresser Inc.