El Paso extended completion of Gallup Station maintenance thatbegan June 10 through today, continuing a reduction of San JuanBasin capacity by 250 MMcf/d. The Gallup C turbine will remain downas originally scheduled through June 20. However, because othermaintenance actions may delay the station’s return to fulloperation, a San Juan capacity reduction of 200 MMcf/d startingSaturday may last as long as June 22, a spokesman said.
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Prices Rally Strongly As Weather Influence Grows
Fundamentals began playing a larger role in a rebounding weekendmarket Friday as several sources expressed relief that thepreviously frenetic screen was beginning to calm down.
Transportation Notes
Florida Gas Transmission began unplanned maintenance Saturday atCompressor Station 7.5 in Port Barre, LA. It is expected to lastthrough May 8 and is limiting upstream volumes to 875 MMcf/d.
Transportation Notes
Koch Gateway began scheduled maintenance Monday on its SouthHenderson Line (FPL 3) in East Texas. The work, which is expectedto last 10 days, is causing shut-ins at 14 points, butaffectedshippers are being kept whole on the delivery side.
Tengasco Begins Phase Two Construction
Tengasco Inc. began construction on Phase Two of its gaspipeline system following permitting by the Tennessee Department ofTransportation. The 28-mile mile second phase will complete the60-mile system, which ties Tengasco’s Swan Creek gas field intoend-user markets in Eastern Tennessee. The pipeline is the onlyintrastate gas carrier in Tennessee.
FERC, Justice Nip at Kinder Morgan’s Heels
Last week was an “Excedrin headache” kind of week for KinderMorgan Inc. It began with the company trying to get a Coloradocourt to toss out a Justice Department complaint alleging thataffiliate Natural Gas Pipeline Co. of America (NGPL) failed toobtain the necessary air quality permits for a compressor stationit built in Colorado more than 20 years ago. The complaint, whichJustice brought on behalf of the Environmental Protection Agency,seeks the maximum statutory penalties from the company, which couldsoar into the millions.
Transportation Notes
Columbia Gas began an open season Wednesday to assess interestin increased FT on Line 10338 in New York from the Ramapo Stationto the Buena Vista Station. The expansion would be achieved throughan upgrade of Ramapo Station. Contract terms would be for 10 yearsor longer, but the service would terminate automatically ifColumbia abandons Line 10338 by conveyance to its proposedMillennium Pipeline project. The open season will run through 4:30p.m. EST March 31. The pipeline also is asking existing FTcustomers on Line 10338 if they wish to permanently turn back theircapacity. Call Bernie Schaffler at (703) 227-3265 for moreinformation.
PG&E Begins CA Power Plant Construction
PG&E Corp.’s National Energy Group began construction on theLa Paloma Generating Plant, a 1,048 MW gas-fired, combined-cyclefacility expected to begin operating in the summer of 2001. Theplant is estimated to burn about 180,000 MMcf/d, and Kern-Mojave isthe closest pipeline source, a spokesman said.
Maritimes Clears the Way for Halifax Route
Maritimes & Northeast Pipeline has begun clearing theHalifax Lateral pipeline route. The clearing contractor began workon Feb. 29 in various locations along the lateral route that havereceived National Energy Board approval. Clearing is scheduled tobe complete in April.
Project Ekho Gets Started; Area Pinpointed
A $9.5 million deep-drilling project in California’s oil-gassaturated south San Joaquin Valley, dubbed Project Ekho, began itsfirst test drilling Monday at a site 40 miles northwest ofBakersfield, shooting for a depth of 19,500 feet where itsindependent backers calculate there could be the beginning of somesubstantial new oil and gas supplies, according toBakersfield-based Tri-Valley Oil & Gas Co., operator of theproject, which has numerous Canadian backers.