Delays

Independence Pipeline told the Federal Energy Regulatory Commission last week it still has not gained access to sections of its proposed right of way in Ohio because of landowner opposition. It also lacks contracts for the required 68% of its proposed 1 Bcf/d of firm capacity. Only about 38% so far has been subscribed, all of it by Dynegy Corp. As a result, pipeline sponsors request that the project in-service date be delayed until November 2004 from July 2003. Extensions also were requested for the related SupplyLink project sponsored by ANR Pipeline.

Independence Pipeline told the Federal Energy Regulatory Commission Thursday it still has not gained access to parts of its proposed right of way in Ohio because of landowner opposition and also lacks contracts for the required 68% of its proposed 1 Bcf/d of firm capacity. Only about 38% so far has been subscribed, all of it by Dynegy Corp. As a result, pipeline sponsors request that the project in-service date be delayed until November 2004 from July 2003. Extensions also were requested for the related SupplyLink project sponsored by ANR Pipeline.

Tennessee reported experiencing unanticipated delays in completing necessary pipeline modifications at the Yscloskey Gas Processing Plant, located near Main Line Valve 529 in southeast Louisiana. This delay does not impact available capacity on the 500 Line, Tennessee said, but the Eloi Bay meter will stay out of service until the modifications are finished. The pipeline anticipated being able to resume partial Yscloskey deliveries Thursday, and expects the plant to be processing about 600 MMcf/d around Sunday. It also hopes to complete the pipe modifications late Sunday, upon which full deliveries to Yscloskey for processing will resume and the Eloi Bay meter will return to service.

Tennessee reported experiencing unanticipated delays in completing necessary pipeline modifications at the Yscloskey Gas Processing Plant, located near Main Line Valve 529 in southeast Louisiana. This delay does not impact available capacity on the 500 Line, Tennessee said, but the Eloi Bay meter will stay out of service until the modifications are finished. On or about today, the pipeline anticipates being able to resume partial Yscloskey deliveries, and expects the plant to be processing about 600 MMcf/d around Sunday. It also hopes to complete the pipe modifications latee Sunday, upon which full deliveries to Yscloskey for processing will resume and the Eloi Bay meter will return to service.

Mounting bearish fundamentals, including plummeting crude oil prices due to concerns about a potential recession, helped pull October natural gas futures down to a new all-time low for the October contract and to the lowest near-month price since November 1999. October ended the regular trading session down 12.3 cents to $2.102 with a low of $2.080 and a high of $2.190.

To allow more public and stakeholder input, the California Energy Commission postponed until next month issuing a report on state electricity and natural gas trends. The report was requested by the legislature along with a separate, higher profile report on natural gas infrastructure issues, which also will be delayed.

To allow more public and stakeholder input, the California Energy Commission Wednesday postponed until next month issuing a report on state electricity and natural gas trends. The report was requested by the legislature along with a separate, higher profile report on natural gas infrastructure issues, which also will be delayed.

In an ironic twist of fate, California lawmakers have succeeded in deterring construction of new generation at the same time they are trying to solve their state’s energy shortage. Mirant Corp. said on Friday it will delay construction on its approved 530 MW expansion at its Contra Costa power plant because of market uncertainty. The plant received its permit May 29.

The Nevada legislature this week is expected to pass a new comprehensive energy law that delays for at least two years state efforts to restructure the electricity industry and to provide assurances that the state’s two major power utilities can recover all of their future costs. The governor is expected to sign the bill (AB 369), effectively freezing any more deregulation efforts, including the utilities’ divestiture of nine power plants (see Daily GPI, April 9).