Cycle

Shale gas production in the United States with some output from Canada is expected to more than triple by 2020, according to a new report released by Calgary-based Ziff Energy Group last Thursday.

Southern California Gas Co. (SoCalGas) has begun its storage open season for its 2009 capacity. The company is offering more than 30 Bcf of multi-cycle working capacity for up to three years, beginning April 1. Capacity releases will be made thorough bilateral negotiations, and buyers have the flexibility to specify the cycling capability. SoCalGas officials said the implementation of firm access rights on Oct. 1 moved the location for storage receipts and deliveries from the California border to the SoCalGas Citygate (see Daily GPI, Oct. 3). Customers interested in acquiring storage services need to submit a written nonbinding bid, preferably via e-mail, specifying the desired levels of firm inventory, injection and withdrawal capacities and the annual demand charge the customer is willing to pay. The demand charge should be stated as a total annual dollar amount or a price per dekatherm of inventory capacity. More information about the storage capacity release is available on SoCalGas’ website or by calling Gwoon Tom at (213) 244-3692.

FERC Tuesday issued a favorable environmental assessment (EA) of Southeast Gas Storage LLC’s proposal to build a multi-cycle, high-deliverability storage facility that would provide 24.7 Bcf of working gas capacity from a natural gas reservoir in northeastern Mississippi.

The Alabama Oil and Gas Board has granted the petition of MoBay Storage Hub LLC to establish the North Dauphin Island Gas Storage Facility, a 50 Bcf high-deliverability, multi-cycle (HDMC) underground storage operation designed to serve as a hub with multiple pipeline connections at the eastern end of the Gulf Coast, MoBay said last Thursday.

The Alabama Oil and Gas Board has granted the petition of MoBay Storage Hub LLC to establish the North Dauphin Island Gas Storage Facility, a 50 Bcf high-deliverability, multi-cycle (HDMC) underground storage operation designed to serve as a hub with multiple pipeline connections at the eastern end of the Gulf Coast, MoBay said Thursday.

FERC gave Monroe Gas Storage Co. LLC, a joint venture of Foothills Energy Ventures LLC and High Sierra Energy LP, approval to begin construction of a 12 Bcf multi-cycle natural gas storage facility near Amory, MS. The facility will have a maximum injection capability of 445 MMcf/d and a maximum withdrawal capability of 465 MMcf/d. It will have dual interconnections to Texas Eastern Transmission in the M1 market zone and Tennessee Gas Pipeline into the 500 Leg in Zone 1. Monroe expects the facility to be in full service in the fourth quarter of this year. The Federal Energy Regulatory Commission approved the storage project in December 2007 (see Daily GPI, Dec. 21, 2007).

Southern California Gas waited until early morning to declare a high-linepack OFO on the Intraday 1 nominations cycle for Thursday, setting the tolerance for positive daily imbalances at 10%. The OFO will be kept in place through at least Friday.

Taking the rare step of issuing an OFO on the morning of its implementation, Southern California Gas (SoCalGas) declared a high-linepack OFO on the Intraday 1 nominations cycle for Wednesday. The giant LDC said it would assess Buy-Back charges in accordance with its rules and tariffs to customers who delivered more than 110% of their actual gas usage on the OFO day. The OFO was extended with the same conditions through Thursday.

Because primary firm nominations through the Plymouth North Constraint Point for the Timely cycle of Thursday’s gas day were below the available capacity of 453,000 Dth/d, Northwest discontinued the Declared Deficiency Period for the point Thursday and said it would allow new nomination requests in the Evening and Intraday cycles up to 500,000 Dth/d. If primary firm nomination requests for Friday exceed 453,000 Dth/d, Northwest said, it will declare a new Deficiency Period for the remainder of the work, which it expects to complete that day. It plans to schedule up to Plymouth North’s design capacity of 553,000 Dth/d for Saturday.