Demand

Southern California Gas did not extend a high-linepack OFO beyond Wednesday.

In a decision that could knock gas demand down a notch in Texas, CenterPoint subsidiary Texas Genco Holdings said it will mothball 2,990 MW of older gas-fired generation because of an oversupply situation. The Electric Reliability Council of Texas has forecast a 20% reserve margin this year. Significant new and more efficient merchant power has been built in the state, pushing older plants out of the market.

In a decision that could knock gas demand down a notch in Texas, CenterPoint subsidiary Texas Genco Holdings said it will mothball 2,990 MW of older gas-fired generation because of an oversupply situation. The Electric Reliability Council of Texas has forecast a 20% reserve margin this year. Significant new and more efficient merchant power has been built in the state, pushing older plants out of the market.

Rep. Richard Pombo (R-CA), co-chair of the emergency task force on natural gas issues with Rep. Billy Tauzin (R-LA), has asked the Government Accounting Office to conduct an inventory and report on all administration appeals and judicial litigation that are delaying critical energy exploration and production projects in the United States.

California’s new statewide energy action plan calls for an accelerated effort to increase gas storage capacity, gas conservation and demand-side management as well as developing two Pacific Coast liquefied natural gas (LNG) receiving terminals, the state’s three major energy agencies announced in a press conference last week. “California is in the market for LNG, and that is what people need to hear,” said one of the state energy commissioners.

Southern Natural said Friday that it is currently at maximum storage injection and based on current supply and projected demand, it will exceed its maximum storage injection capacity beginning with the start of the gas day on Saturday, July 19. Southern said it would review nominations Saturday and could call a Type 6 OFO if it does not see a decrease in supply. It requested that all shippers/poolers monitor the balance between actual receipts and deliveries (including no-notice injection entitlements, scheduled ISS injections, and scheduled parks) to ensure that an out-of-balance situation does not occur.

California’s new statewide energy action plan calls for an accelerated effort to increase gas storage capacity, gas conservation and demand-side management as well as developing two Pacific Coast liquefied natural gas (LNG) receiving terminals, the state’s three major energy agencies announced in a press conference this week. “California is in the market for LNG, and that is what people need to hear,” said one of the state energy commissioners.

Citing high linepack and anticipation of low demand over the holiday weekend, Tennessee issued a systemwide OFO Action Alert effective with the beginning of Friday’s gas day and said it expected the alert to remain in effect through Monday. Its bulletin board posting listed actions that customers under Rate Schedules SA, LMS-PA and LMS-MA could take to avoid penalties.

While residential gas demand continues to inch higher because the number of homes using natural gas is rising, gas use per home fell 22% from 1980 to 2001 and 6.4% between 1997 and 2001 because of greater efficiency of home heating equipment and appliances and customer conservation, according to a new report by the American Gas Association (AGA).