One of California’s most diligent economic analysis/forecasts published by the Los Angeles County Economic Development Corp. (LAEDC), a nonprofit economic development group with increasing statewide reach, indicated in its latest weekly economic outlook for the region and state that energy this summer could be a worrisome component of the state’s sagging economy. It particularly targeted the potential ill-effects of high natural gas prices, which could be felt more severely in the East than the West, the forecast noted. “The current cool weather will not last forever,” wrote economist George Huang in LAEDC’s forecast for the week of June 9-15. “When the mercury goes up, electricity grid operators get nervous.” He credited last year’s relatively cooler summer in California for preventing blackouts, adding “we may not be so lucky this summer.”
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Vector Pipeline LP. announced that a new interconnect between its pipeline and ANR Pipeline Co. has been put into service at St. John in Lake County, IN. The connection is designed to provide natural gas customers in the Midwest and southwestern Ontario additional flexibility and access to natural gas supplies at the Joliet/Chicago Hub. “Existing and future shippers on the Vector and ANR pipeline systems will benefit from this interconnection,” said Craig R. Fishbeck, Vector president. “This will provide ANR customers access to markets in southwestern Ontario and Vector customers additional supply security with access to Midcontinent, Rockies and Gulf Coast supplies on ANR.” Vector said the St. John facilities have a design capacity of 200 MMcf/d. The 42-inch Vector Pipeline, which is a partnership of Calgary-based Enbridge Inc. (45% interest), Duke Energy Corp. (30%), and DTE Energy Co. (25%), transports Western Canadian natural gas from the Chicago-area market hub in Joliet, IL, to the hub at Dawn, ON.
St. John Interconnect Adds Flexibility on ANR, Vector Pipes
Vector Pipeline LP. announced Monday that a new interconnect between its pipeline and ANR Pipeline Co. has been put into service at St. John in Lake County, IN. The connection is designed to provide natural gas customers in the Midwest and southwestern Ontario additional flexibility and access to natural gas supplies at the Joliet/Chicago Hub.
Falcon’s Open Season Targets Expanded Capacity at Texas’ Hill-Lake Facility
Falcon Gas Storage Co. Inc. is running an open season through May 16 for expanded capacity at its Hill-Lake Gas Storage Facility in Eastland County, TX. The high deliverability, multi-cycle (HDMC) facility will serve markets in the Dallas-Fort Worth area as well as other parts of Texas.
Falcon’s Open Season Targets Expanded Capacity at Texas’ Hill-Lake Facility
Falcon Gas Storage Co. Inc. is holding an open season for expanded capacity at its Hill-Lake Gas Storage Facility in Eastland County, TX beginning Tuesday and running through May 16. The high deliverability, multi-cycle (HDMC) facility will serve markets in the Dallas-Fort Worth area as well as other parts of Texas.
Industry Briefs
Houston-based independent Carrizo Oil & Gas Inc. said Thursday that its Hankamer No. 1 well in Liberty County, TX, has begun producing at a gross rate of 15,122 Mcfe/d and 772 bbl/d. The well, in which Carrizo is operator and 40% partner, was drilled in the fourth quarter. The company said the well, which was successfully completed in the Cook Mountain interval, had a flowing tubing pressure of 7,166 psi. Carrizo is monitoring the well’s performance and has increased the production rate to a current rate of approximately 525 bbl and 7,000 Mcf (10,50 Mcfe) a day. Carrizo also announced that the Pauline Huebner A-382 #2 well in the company’s Matagorda Project Area, which targeted a previously untested structure near successful wells in the Providence Field, has now been drilled, reaching a total depth of 12,500 feet earlier this month. The well logs indicate 74 feet of apparent net pay in three potential pay intervals. Carrizo is the operator of the well and owns working interests ranging from 46.5-52.5% in the primary well objectives, depending upon the actual depth of the zone to be produced. Completion operations are in process and Carrizo expects to be able to test the well in the next seven to 10 days. Carrizo also is currently drilling another follow-up well to the company’s successful wells in the Providence Field, the Pauline Huebner A-382 #3, which is expected to reach total depth in the next seven to 10 days.
Transportation Notes
There was no change in status Tuesday for a CIG rupture that occurred Sunday night in Weld County, CO (see Daily GPI, March 25), according to a pipeline spokesman. The company still anticipates there will be no interruptions in service and will post a bulletin board notice when repairs are completed, he said.
Judge Dismisses PUD Lawsuit Filed Against Power Suppliers
The Public Utility District No. 1 (PUD) of Snohomish County, WA, struck out a second time last Monday in its attempts to collect damages for high-priced power or renegotiate contracts signed during the western energy crisis. Monday’s loss came in the form of the dismissal of its case by a U.S. district judge in California. The judge ruled that the claims made by the PUD against power suppliers are preempted by FERC’s regulatory authority.
Transportation Notes
NGPL expected to complete planned maintenance on Compressor Station 343 in Liberty County, TX on its Louisiana Line (see Daily GPI, Dec. 3) by Thursday night. Capacity will be back to normal in Segment 25 for Friday’s gas day, the pipeline said.
Aquila’s Red Lake Gas Seeks to Build Storage Facilities in AZ
Aquila Corp. affiliate Red Lake Gas Storage LP has filed an application at FERC for a certificate to build new storage facilities and an associated pipeline in Mohave County, AZ, to meet the growing natural gas demand in that region. It also is seeking the green light to offer storage and hub services at market-prevailing prices.