Compressors

FERC Wednesday issued a favorable environmental assessment (EA) of National Fuel Gas Supply Corp.’s Line N 2012 expansion project that would increase the takeaway capacity from the Marcellus Shale basin to serve Northeast markets.

Cabot Oil & Gas Corp. has received a long-awaited air quality permit from Pennsylvania regulators to build three natural gas compressors in Susquehanna County, PA, in the heart of its Marcellus Shale operations.

Pacific Gas & Electric is ending Thursday a high-inventory OFO that had been in effect for the previous two days.

Mojave Pipeline began taking its compressors at the Topock, AZ border delivery point into Southern California down, one at a time, for exhaust system maintenance Tuesday. The outages, which are scheduled to last through Thursday, reduce capacity into Mojave from El Paso and Transwestern by 165 MMcf/d from a base capacity of 500 MMcf/d.

GE Energy said a new $400 million, 17-year service agreement, covering 27 gas turbines and 47 centrifugal compressors at Atlantic LNG’s liquefied natural gas (LNG) production facility in Port Fortin, Trinidad, would add about a year of LNG production at the plant over the contract’s term.

Dominion Transmission and Texas Eastern Transmission received approval Wednesday of their FERC petition to increase operations of compressors at their jointly-owned Oakford Storage Complex in Westmoreland County, PA to their design rating in order to enhance flexibility and reliability of the facility. The increase would be accomplished by adjusting software controls. FERC noted the change would increase power available for early and late season withdrawals, and may be used to maintain withdrawal capabilities in the event that existing horsepower becomes unavailable.

As posted earlier (see Daily GPI, Oct. 16), Sonat has determined that the three compressors used for injection and compressed withdrawal at the Muldon (MS) Storage Facility cannot be operated in their current condition. Repairs are under way on two units, and one is currently expected to return to service by Thanksgiving. A second unit is expected to be back on-line during the upcoming winter. However, personnel have determined that the third unit cannot be repaired and thus are evaluating replacement options. Sonat expects that replacement parts for the third unit will be installed and it will be available for service in April 2002. The Daily Injection Quantity for each CSS customer will remain at 36% of normal until further notice, but will increase by about 21 percentage points for each unit that is placed back in service. The Daily Withdrawal Quantity will remain at 100% until further notice. “However, if compressed withdrawal is required prior to all three compressor units being placed back in service, some reduction in DWQ is possible,” Sonat said, although that likely would not occur until late winter.

Hanover Compressor Co., which rents, repairs and services natural gas compressors worldwide, broadened its customer base last Thursday, agreeing to acquire several compression and gas handling joint venture projects of Schlumberger for $761 million. Hanover will pay Schlumberger $270 million in cash, $150 million in a long-term loan and issue shares worth $283 million, effectively giving Schlumberger a 10% stake in the company.

Hanover Compressor Co., which rents, repairs and services natural gas compressors worldwide, broadened its customer base Thursday, agreeing to acquire several compression and gas handling joint venture projects of Schlumberger for $761 million. Hanover will pay Schlumberger $270 million in cash, $150 million in a long-term loan and issue shares worth $283 million, effectively giving Schlumberger a 10% stake in the company.