Incremental Northeast gas production during September will be driven by gathering system tie-ins, Bentek Energy LLC said in a Natural Gas Production Monitor market note. Transcontinental Gas Pipe Line Co. (Transco) is expected to add connections to two Penn Virginia Resource Partners LP gathering systems and additional compression on Williams’ Springville system is to come online this month, Bentek said. “Combined delivery capacity to Transco from the new tie-ins and compression upgrades will amount to more than 1 Bcf/d; however, Transco will likely not be able to accept more than 0.4 Bcf/d with a substantial portion of the Leidy Line capacity reserved for no-notice service,” the firm said. It expects Northeast production to add 0.2 Bcf/d during September, with the remainder of the Transco capacity filling through October. In November, the Tennessee Gas Pipeline Northeast Supply Diversification and the National FuelGas Co. Northern Access expansions are expected to support a winter production growth rate of about 0.2 Bcf/d each month through January (see Shale Daily, July 18), Bentek said.
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LNG? Who Needs It? Long Beach Muni Opts for 30-Year Pre-Pay
In a move that pretty much eliminates its potential as a direct buyer of future liquefied natural gas (LNG) should it show up in California, the City of Long Beach’s municipal gas utility closed a 30-year pre-pay supply deal last Thursday that will satisfy 80-90% of its 12-13 Bcf annual load with terms that will keep its retail rates below the surrounding Sempra Energy utilities for the next three decades, according to its general manager.
Reliant Eliminates Jobs in Cost-Cutting Plan
Houston-based Reliant Resources Inc. (RRI) confirmed Monday that it is eliminating jobs as part of an overall cost-cutting plan. No other details were provided, however, RRI is scheduled to report its second quarter earnings on Tuesday.
Puget’s Purchase Eliminates PURPA Contract
In an ongoing effort to reduce power costs from existing PublicUtilities Regulatory Policy Act (PURPA) contracts, Puget SoundEnergy announced yesterday an agreement to buy a 160 MW gas-firedcogeneration plant in Bellingham, WA, from Encogen for $164million. Puget Sound said buying the facility eliminated its secondlargest PURPA contract, a deal which required it to pay Encogenfixed and escalating fees through mid-2008 for the plant’s output.
Kern Offers to Cut Rates, Settles With Shippers Before Case Begins
In a rare move that eliminates huge legal costs, Kern River GasTransmission has submitted to FERC a negotiated settlementagreement on its rate design prior to the start of a general ratecase (RP99-274). The agreement has the approval of all of itsshippers. Kern’s general rate case was scheduled to begin thismonth.
Kern, Shippers Settle Rate Case Before it Begins
In a rare move that eliminates huge legal costs, Kern River GasTransmission has submitted to FERC a negotiated settlementagreement on its rate design prior to the start of a general ratecase (RP99-274). The agreement has the approval of all of itsshippers. Kern’s general rate case was scheduled to begin thismonth.
House Eliminates LIHEAP Funding
The House Appropriations Committee Tuesday eliminated fiscalyear 1999 funding for the Low Income Home Energy Assistance Program(LIHEAP). Last month, the House Appropriations subcommittee onLabor, Health and Human Services and Education zeroed out fundingfor LIHEAP despite the Clinton administration’s request for morethan $1 billion in fiscal year 1999 funding. Tuesday’s actionclears the bill for consideration by the entire House ofRepresentatives.
