Capacity

Sonat canceled an OFO Type 3 for eight market-area groups and capacity allocations in four other groups Tuesday after the constraints had been in effect for one day.

The Federal Energy Regulatory Commission approved an expansion of Columbia Gas Transmission Corp.’s pipeline to provide 125,000 Dth/d of additional capacity for a new power plant at the Pennsylvania-Delaware border. The project will provide service to FPL Energy’s 750 MW Marcus Hook power plant. The plant would be built in both New Castle County, DE, and Delaware County, PA. The $22.3 million pipeline expansion project, which is expected to be completed this fall, would involve adding an extension from the company’s mainline to the plant and upgrading compressor stations. Two 6,000 hp compressors will be added to the Eagle and Downingtown stations on its mainline in Chester County, PA, and 1.3 miles of 20-inch diameter lateral will be added from Columbia’s Delmarva meter station on Line 1-345 in New Castle County DE. FERC said Columbia could roll in the expansion and replacement project costs with it existing rates, given that this will result in a reduction in rates for existing customers. The replacement phase of the project calls for Columbia to remove two aged compressors at its Downingtown station.

Rising net natural gas exports to the United States “could put more pressure on natural gas prices” both in the United States and “especially” in Canada as pipeline capacity fills up, according to the latest oil and gas research bulletin by Lehman Brothers’ exploration and production analysts.

Rising net natural gas exports to the United States “could put more pressure on natural gas prices” both in the United States and “especially” in Canada as pipeline capacity fills up, according to the latest oil and gas research bulletin by Lehman Brothers’ exploration and production analysts.

Burgeoning gas production in northern British Columbia has prompted Westcoast Energy to hold another open season for a capacity expansion. As a result of a recent open season, Westcoast gathered binding requests for 33 MMcf/d of expansion service on its Forth Nelson mainline for an April 2002 in-service date. A new open season held last week was for an additional 120 MMcf/d on the Fort Nelson line by November 2002.

Burgeoning gas production in northern British Columbia has prompted Westcoast Energy to hold another open season for a capacity expansion. As a result of a recent open season, Westcoast gathered binding requests for 33 MMcf/d of expansion service on its Forth Nelson mainline for an April 2002 in-service date. This new open season is for an additional 120 MMcf/d on the Fort Nelson line by November 2002.

Citing fully used capacity, warmer weather in its market area and lower overall linepack, Florida Gas Transmission issued Tuesday an Overage Alert Day notice with 10% tolerance for negative daily imbalances.

Anticipating the development of a natural gas pipeline in the Mackenzie Delta Valley to move supplies to the Lower 48, Ensign Resource Service Group Inc. and Gwich’in Development Corp. (GDC) have teamed up in a joint venture to provide drilling and oilfield services in the Northwest Territories. Ensign, based in Calgary, is Canada’s second largest drilling firm, and has given GDC, an aboriginal company, a 51% stake in the deal establishing Gwich’in Ensign Oilfield Services Inc. (GEOS).

PG&E Gas Transmission-Northwest (GTN) said it received market requests for about three times the capacity on a proposed lateral that would cross Washington and compete with Northwest Pipeline for rapidly expanding power generation markets in the western half of the state along the I-5 highway corridor. GTN closed its open season for the Washington Lateral Project June 22. It was the third open season for a GTN pipeline expansion this year. Meanwhile Northwest Pipeline has four expansions of its own planned for the region.