The Federal Energy Regulatory Commission has approved Transcontinental Gas Pipe Line’s (Transco) Northeast Supply Link project to provide additional firm transportation service from the Marcellus Shale. The project would provide 250,000 Dth/d of incremental firm transportation capacity from supply interconnections on Transco’s Leidy Line in Pennsylvania to its 210 Market Pool in New Jersey and the Manhattan, Central Manhattan and Narrows delivery points in New York City. Thirteen miles of additional 42-inch diameter pipe segments, called loops, are to be built in Pennsylvania and New Jersey, along with more compression and modifications. The project, which received a favorable environmental assessment in August, is slated to be completed and in operation by November 2013 (see NGI, March 8, 2010). In addition to the loop segments, the Williams’ pipeline plans to install a 25,000 hp electric motor-driven compressor station and substation in Essex County, NJ, (Station 303); and install a 16,000 hp natural gas turbine-driven compressor unit at its existing Compressor Station No. 515 in Luzerne County, PA. Four shippers have subscribed for all of the capacity including affiliate Williams Gas Marketing Inc. (135,000 Dth/d); Anadarko Energy Services Co. (67,500 Dth/d); MMGS Inc. (32,500 Dth/d and Hess Corp. (15,000 Dth/d).
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Mild Cash Strength Overshadowed by Futures Free-Fall
The cash market overall Tuesday was on average a penny higher with mild strength evident in most regions. More than a handful of Northeast points weakened. Futures found the rarefied air of Monday’s gains unsustainable and recorded a double-digit loss. At the close August had dropped 14.6 cents to $2.737 and September had lost 14.8 cents to $2.728. August crude oil dropped $2.08 to $83.91/bbl.
Range Packing Up in Barnett, Heading for Marcellus
Fort Worth-based Range Resources Corp. is pulling up stakes in the Barnett Shale of North Texas and redeploying its efforts and capital in the Appalachian Basin’s higher-return Marcellus Shale, the company said.
Warming Trends Cause Drops at Nearly All Points
Spring-like weather was starting to bust out in quite a few areas Friday and due to continue through the weekend. That was evident in the spot gas market as prices fell at nearly all points. The weekend loss of industrial demand was another bearish factor, while the previous day’s 4.5-cent gain by March futures obviously did little to support cash numbers.
Futures Test $7 as Gustav Lacked Gulf-Busting Gusto
As it became more evident Wednesday that Hurricane Gustav left the energy infrastructure in the Gulf of Mexico intact (see related story), October natural gas futures continued to press the downside, coming within a couple of pennies of breaking below $7. The prompt-month contract recorded a low of $7.028 before rebounding to close out Wednesday’s regular session at $7.264, up less than a penny from Tuesday’s finish.
Business Sector Praises CA Green Building Code
The growing bipartisan appeal of clean and efficient energy programs was evident as major environmental and business interests praised California’s move to adopt what state officials are touting as the nation’s first statewide “green” building code. The California Building Standards Commission said it acted at the direction of Gov. Arnold Schwarzenegger.
Slowdown in U.S. Land Drilling Expected to Impact Entire Sector
Weaker-than-expected North American natural gas drilling in the last four months has taken a bite out of earnings for at least two major U.S. oilfield contractors, and the slowdown is expected to impact energy earnings across the board for the next few months, according to energy analysts.
Slowdown in U.S. Land Drilling Expected to Impact Entire Sector
Weaker-than-expected North American natural gas drilling in the last four months has taken a bite out of earnings for at least two major U.S. oilfield contractors, and the slowdown is expected to impact energy earnings across the board for the next few months, according to energy analysts.
Futures Trade 20-Plus-Cent Range Before Closing Near Unchanged
After January natural gas futures traded in a 23.5-cent range from $7.330 to $7.565 on Tuesday, the lack of market direction became even more evident as the contract closed out the day at $7.430, a mere three-tenths of a penny higher than Monday’s $7.427 settle.
Hints of Weakness Begin to Show Up in Cash Market
Modest upticks in cash prices continued to prevail Thursday, but signs of a weakening market were evident. None of the gains were greater than 7-8 cents, and more points were seeing either flatness or lower numbers. The hot weather in the South and West that had lent a modicum of support to Wednesday’s prices was waning a bit, and the 7.2-cent screen gain on Wednesday may have been the only thing averting overall softness Thursday.