Coast

Producers’ economic decisions to shut down gas processing plants all along the Gulf Coast last year, leaving liquids in the gas stream, has led pipelines to place restrictions on the quality of the gas entering pipelines in order to protect their operations, the Interstate Natural Gas Assoc. of America (INGAA) said in a letter to FERC Chairman Pat Wood.

A leak was confirmed at the Mustang Island 762 platform on the Northern Natural Gas-operated Matagorda Offshore Pipeline System off the Texas coast. The point was taken to zero flow, causing the shut-in of about 8,000 MMBtu/d until further notice. Personnel are evaluating the leak for repairs.

While exports to the United States drive the expanding natural gas sector on Canada’s East Coast, it remains unclear whether there will be a domestic distribution grid in Nova Scotia. The Nova Scotia utility commission has set a deadline of Jan. 14, 2002, to receive applications for a second run at building a gas distribution system in the province. A hearing has been called for Nov. 19 on issues raised by the withdrawal of Sempra Atlantic Gas from the project, including what to do with C$50 million (US$30 million) in installations that the company was able to construct in the Halifax-Dartmouth area.

A Bolivian consortium, which set its sights on moving liquefied natural gas (LNG) to the U.S. West Coast under a plan announced in July, moved its plan one step closer to reality this week after officials approved a tentative agreement giving Bolivia the right to move LNG through Mexico for transport to the United States. If approved as expected later this year, Mexico would allow the consortium to transport natural gas through pipelines into Mexico, and then to process the LNG at Mexican plants before it is exported to the United States.

A Bolivian consortium, which set its sights on moving liquefied natural gas (LNG) to the U.S. West Coast under a plan announced in July, moved its plan one step closer to reality this week after officials approved a tentative agreement giving Bolivia the right to move LNG through Mexico for transport to the United States. If approved as expected later this year, Mexico would allow the consortium to transport natural gas through pipelines into Mexico, and then to process the LNG at Mexican plants before it is exported to the United States.

With natural gas as its standard bearer and its sights set on the energy-starved East Coast, KeySpan Corp. announced it is now 8% ahead of its 2001 goal to add $60 million to its gross profit margin through gas conversions on Long Island and the Boston area, and is on target to reach about 90% of the home heating market in the Long Island region within the next few years. The company is now involved in four pipeline projects, and has set a goal to deliver almost 1 Bcf/d to the eastern suburbs of New York City.

With natural gas as its standard bearer and its sights set on the energy-starved East Coast, KeySpan Corp. announced it is now 8% ahead of its 2001 goal to add $60 million to its gross profit margin through gas conversions on Long Island and the Boston area, and is on target to reach about 90% of the home heating market in the Long Island region within the next few years. The company is now involved in four pipeline projects, and has set a goal to deliver almost 1 Bcf/d to the eastern suburbs of New York City.

Just as it looked like prices were going to make another assault on the $3.00 level, natural gas futures rebounded yesterday morning in a knee-jerk reaction to reports that a tropical storm had formed in the Gulf of Mexico. While market watchers and traders have been mindful all week about a serious low pressure system bringing rains to Florida, few expected it to develop into a tropical system so quickly. The September contract led the price march higher, finishing 11.1 cents stronger at 3.192. The 12-month strip, meanwhile, lagged somewhat, closing 7.8 cents higher at $3.533. Estimated volume was light with just 52,503 contracts changing hands. As of 5 p.m. EDT Thursday Barry was about 315 miles southeast of the mouth of the Mississippi River, according to the National Weather Service. It was moving toward the northwest at 4 mph and likely to make a gradual turn to a west-northwest track Friday, NWS said, forecasting “some strengthening” of Barry, which was packing a maximum sustained wind of 45 MPH yesterday evening. A tropical storm is labeled a hurricane when sustained winds have reached 74 MPH.

Cabot LNG, currently the only active liquefied natural gas importer on the East Coast, has entered into a second 20-year charter agreement with Norwegian shipping giant Bergesen for a 138,000 cubic meter LNG carrier. Cabot’s first carrier agreement was completed in November 2000 and both vessels are scheduled for delivery in 2003.