Constrained

In order to serve continuing gas demand growth in the already constrained New York City area, the state and city must reconsider current regulatory obstacles to the expanded use of liquefied natural gas (LNG), according to a new report by the Center for Management Analysis (CMA) at the C.W. Post Campus of Long Island University in Brookville, NY. LNG will play an increasingly important role in providing gas supply to the nation, but no LNG import terminals are currently located in New York, the fourth largest gas consuming state in the nation and the third largest for residential gas consumption. Spot gas prices last winter reached record levels in the state, higher than $70/MMBtu. If the state and metropolitan New York City expect to benefit from LNG, the rules and regulations governing the fuel will have to be revised, according to CMA.

The pipeline constrained Rocky Mountain region is less than a month away from getting a major new pipeline expansion, and one other large expansion project is making progress and should be filed with FERC in the next few months, according to company officials.

The pipeline constrained Rocky Mountain region is less than a month away from getting a major new pipeline expansion, and one other large expansion project is making progress and should be filed with FERC in the next few months, according to company officials.

El Paso Natural Gas has decided to take another stab at expanding its constrained Bondad system. It has asked FERC for the green light to undertake a mainline compression upgrade to add up to 140,000 Mcf/d of firm transportation capacity on the system, bringing total capacity to 725,500 Mcf/d.

El Paso Natural Gas has decided to take another stab at expanding its constrained Bondad system. It has asked FERC for the green light to undertake a mainline compression upgrade to add up to 140,000 Mcf/d of firm transportation capacity on the system, bringing total capacity to 725,500 Mcf/d.

FERC has given Kern River Gas Transmission the go-ahead to construct an alternative delivery point to the constrained Wheeler Ridge point in southern California, which would provide shippers with as much as 500 MMcf/d of additional take-away capacity.

FERC has given Kern River Gas Transmission the go-ahead to construct an alternative delivery point to the constrained Wheeler Ridge point in southern California, which would provide shippers with as much as 500 MMcf/d of additional take-away capacity.

As natural gas prices in the Rocky Mountain region over the last few months have fallen much further than other areas of the country due primarily to transportation constraints, the question becomes, why is the region currently experiencing a frenzy of exploration and production activity, when pricing signals point toward restraint? The answer, according to Raymond James & Associates analyst Wayne Andrews, is that new pipeline infrastructure is on its way to the region, and in a big hurry.

Energy companies are constrained in various ways on every level— exploration and development, generation and transmission,refineries and pipelines — and these barriers all point to theneed for the United States to shape an effective national energypolicy, said several speakers at the recent annual conference ofthe International Society of Energy Advocates.