Conversion

A new Canadian market is expected to develop swiftly for natural gas in Alberta electricity generation, thanks to low prices and expectations that surpluses will hold down costs of the cleanest fossil fuel for years to come.

Analysts at U.S. Capital Advisors LLC (USCA) said utility stocks may have upside potential in the near future as the shale revolution continues, with more customers converting to natural gas, new construction rates returning to normal and the nation continuing its recovery from the 2008 recession.

In a skirmish between a power generator looking to cover its intermittent service needs and a natural gas pipeline company attempting to switch some underutilized pipe to liquids service, American Electric Power Service Corp. (AEP) has told FERC it has “serious concerns” about a Texas Gas Transmission proposal to abandon portions of its Eunice, LA-to-Hardinsburg, KY, pipeline.

Aiming for a report to the state legislature by the end of September, the Utah Public Service Commission (PSC) on Wednesday held a hearing to examine how best to expand the use of natural gas and other alternative fuels in the transportation sector. Many energy representatives and alternative fuel advocates urged that market-based approaches be applied.

Seattle-based natural gas vehicle (NGV) conversion company World CNG is adding outlets in Madison, WI, and on Long Island in New York state to its network of up-fitters in eight other states.

Legislation to extend tax credits that support the conversion of conventional vehicles to run on cleaner fuels, such as natural gas, is awaiting the signature of Oklahoma’s governor after passage by the state House. The incentive, which covers about half the cost of converting a typical vehicle and three-quarters of the cost of establishing an alternative fueling station, will be extended until 2020. The incentives are expected to cost the state — a major natural gas producer — $1.5-2 million per year.

Natural gas for transportation continues to branch out, with developments in both compressed natural gas (CNG) and liquefied natural gas (LNG) options.

Devon Energy Corp.’s North American onshore oil production jumped year/year 20% in 2012 as it continued to makeover its natural gas-weighted portfolio to higher margin liquids and oil targets, but more still needs to be done to squeeze the value of its portfolio, CEO John Richels said Wednesday. Oil appears to be the answer, and dry natural gas development still is off the table.

The U.S. Environmental Protection Agency (EPA) has approved Omnitek Engineering Corp.’s application for diesel-to-natural gas conversion technology for Navistar’s heavy-duty DT466E and DT530E engines.