Assessment

The Emera Brunswick Pipeline Co. Ltd. (EBPC), a subsidiary of Emera Inc., received a favorable environmental assessment report from Canada’s National Energy Board (NEB) Thursday on its proposed 145-kilometer (90-mile) pipeline, which will deliver natural gas from the planned Canaport liquefied natural gas (LNG) import terminal near Saint John, NB, to markets in Canada and the U.S. Northeast.

The Emera Brunswick Pipeline Co. Ltd. (EBPC), a subsidiary of Emera Inc., received a favorable environmental assessment report from Canada’s National Energy Board (NEB) last week on its proposed 145-kilometer (90-mile) pipeline, which will deliver natural gas from the planned Canaport liquefied natural gas (LNG) import terminal near Saint John, NB, to markets in Canada and the U.S. Northeast.

With a legal opinion supporting the move, the Port of Long Beach Harbor Commission Monday decided to terminate an ongoing environmental assessment and reject a four-year-old proposal by Sound Energy Solutions (SES) to build a 1 Bcf/d receiving terminal for liquefied natural gas (LNG) in the harbor.

FERC staff has issued a favorable environmental assessment on Phase II of the Freeport LNG project on Quintana Island south of Houston, saying that with appropriate mitigation the project — to increase LNG sendout from 1.75 Bcf/d (peak) to 2.5 Bcf/d — does not constitute a major federal action significantly affecting the quality of the human environment (CP06-361).

In an update to its hurricane damage assessment, the Minerals Management Service (MMS) sharply increased the number of pipelines listed as damaged by Katrina and Rita last year to 457 from 183 based on additional industry assessments and investigations. It also raised the number of large diameter pipelines (10 inches in diameter or larger) damaged to 101 from 64 but noted that 32 have now returned to service.

In completing an assessment of Hurricane Rita-related damage to its 12-inch lateral from South Marsh Island Block 17/18 through Eugene Island Block 115, ANR said it identified a leak at Eugene Island Block 133. ANR declared a force majeure event in the area Friday and said until further notice, receipt locations on that line and any connected laterals will not be available for nominations. In an update Monday on repairs to offshore and onshore facilities in its Southeast Gathering Area (SEGA), ANR said effective immediately it was increasing capacity through its Grand Chenier, LA facilities to 250 MMcf/d for the SE 3 A (Grand Chen)-CFTP location until further notice. ANR also said it returned to service the following offshore pipelines and interconnects that have been inspected and approved: the 30-inch West Cameron 167 line to Grand Chenier (although at this time no liquids will be accepted at West Cameron 167); and the 16-inch Cameron Meadows line to Lake Arthur, but no interconnections have been cleared for flow on this line. ANR continues to accept nominations for receipt and delivery points located downstream of the Lake Arthur Compressor Station.

ANR said it completed its Hurricane Rita related damage assessment of its West Cameron 167-to-Grand Chenier pipeline segment and related facilities. Due to damages ANR is declaring a force majeure event in this area of its system. ANR continues not to accept any nominations through Grand Chenier. It is pursuing temporary solutions to provide partial service of these facilities in the very near future. ANR said it experienced close to a 66% loss in deliverability on its Gulf system but because it sources significant supplies from the Mid-Continent and Canadian basins it has been able to maintain market deliveries. As a result of damage to its system, ANR has to replace subsea pipe and connections in the South Marsh Island 108 area and it has to repair the measurement and a separation and dehydration plant in the Grand Chenier area. It expects to restore 100% of its throughput by December.

Timely and balanced regulatory decisions have returned to center stage in the assessment of credit ratings for various U.S. utilities, according to the latest analysis by Standard & Poor’s Ratings Services. For the immediate future, upgrades and downgrades of ratings should stay relatively balanced, S&P said in its “Industry Report Card: U.S. Electric/Water/Gas.”

As the Port of Long Beach, CA, 25 miles southeast of downtown Los Angeles, methodically works through the development of an environmental impact assessment, proponents and opponents of a proposed liquefied natural gas (LNG) receiving terminal in the harbor city continued to butt heads last weekend. A neutral city official in attendance said the confrontation was probably a draw in terms of the number of people on each side.