Demand

In the story “Rush to LNG in Baja Raises Questions About Demand, Infrastructure” published on Thursday, March 7, in the 8th paragraph, note that Sempra’s proposed LNG terminal will be south of Rosarito and north of Ensenada.

The latest announcements for developing liquefied natural gas (LNG) receiving facilities and related infrastructure in the northern end of Mexico’s Baja California peninsula already has energy planners in the Southwest scratching their heads over where and how the 2.2 Bcf/d already planned — and more in the works — will be transported and consumed. Conventional wisdom says 1 Bcf/d of added capacity — about one and a half projects — centered south of the U.S. border would likely be the maximum volume the market and pipeline infrastructure can handle, according to the California Energy Commission’s leading natural gas planning guru.

The latest announcements for developing liquefied natural gas (LNG) receiving facilities and related infrastructure in the northern end of Mexico’s Baja California peninsula already has energy planners in the Southwest scratching their heads over where and how the 2.2 Bcf/d already planned, and more in the works, will be transported and consumed. Conventional wisdom says 1 Bcf/d of added capacity — about 1 and 1/2 projects — centered south of the U.S. border would likely be the maximum volume the market and pipeline infrastructure can handle, according to the California Energy Commission’s leading natural gas planning guru.

Based on the weather forecast and projected system demand, Sonat advised shippers that the OFO Type 3 implemented Wednesday for eight market-area groups, along with capacity allocations for four other groups, are being canceled today.

Based on revised weather and demand forecasts received early Monday morning, Sonat issued an OFO Type 3 for eight market-area groups on its system, effective today until further notice. Penalties of $15/Dth apply to any shipper whose deliveries exceed 102% of their daily entitlement at any delivery point within the affected groups. Sonat also will be allocating/limiting IT in three other market-area groups starting today until further notice.

Unseasonably warm weather reduced energy demand in the Northeast, lowered prices and cut into KeySpan’s fourth quarter earnings. The company reported slightly lower earnings, excluding special items, of $99 million, or 71 cents per share, down from $100.9 million, or 75 cents per share, a year earlier. Wall Street analysts had expected earnings of 73-78 cents per share, with a consensus estimate of 75 cents. Including special items, earnings fell to $34.4 million, or 25 cents per share, from $58.9 million, or 44 cents per share.

Unseasonably warm weather reduced energy demand in the Northeast, lowered prices and cut into KeySpan’s fourth quarter earnings. The company reported slightly lower earnings, excluding special items, of $99 million, or 71 cents per share, down from $100.9 million, or 75 cents per share, a year earlier. Wall Street analysts had expected earnings of 73-78 cents per share, with a consensus estimate of 75 cents. Including special items, earnings fell to $34.4 million, or 25 cents per share, from $58.9 million, or 44 cents per share.

Citing the current weather forecast and projected system demand, Sonat notified shippers Monday that eight market-area groups (Birmingham Group, South Main Zone 2, Atlanta Group, South Main Zone 3, East of Wrens, South Georgia-Lee County, Brunswick Group and Savannah Group) will be subject to an OFO Type 3 effective with the start of today’s gas day (Wednesday) until further notice. Concurrent with the OFO, Sonat also will be allocating/limiting interruptible capacity in the Chattanooga Group, East Tennessee Group and North Alabama Group.

Sonat said Friday that based on system conditions and projected demand, it did not expect to implement an OFO Type 3 or Type 22 through Tuesday. “However, current forecasts show cold temperatures through the end of next week. We also expect an increase in load for the start of the gas day” Jan. 2, the pipeline continued, urging shippers to keep their after-hours contacts up to date in case an OFO became necessary to protect the system’s operational integrity. A hotline for OFO and system status updates is available at (800) 315-0575.