Foundation

Although the U.S.liquefied natural gas (LNG) import market is cheerless this year, a study commissioned by the American Gas Foundation says the United States will be a “desirable and dependable destination” for imports and is likely to exceed those going to Europe within the next decade. But it concedes that there will be little to smile about in the short term.

Tennessee declared a force majeure event Friday for Compressor Station 249 in Carlisle, NY, due to the necessity of performing emergency repairs to the foundation supporting the frame of Unit 1A. If left unrepaired, this issue could result in a loss of mechanical integrity of the unit and/or a major failure resulting in an extended outage, Tennessee said. It expected to complete the repairs in seven days. Tennessee anticipates potential restrictions through a pro rata portion of Secondary in the Path nominations through Station 249 and said additional constraints may become necessary.

Fayetteville shale gas producer Southwestern Energy said Friday that subsidiary Southwestern Energy Services Co. has signed a 10-year precedent agreement to be a “foundation shipper” on two pipeline laterals and related facilities proposed by Boardwalk Pipeline subsidiary Texas Gas Transmission LLC.

Fayetteville shale gas producer Southwestern Energy said Friday that subsidiary Southwestern Energy Services Co. has signed a 10-year precedent agreement to be a “foundation shipper” on two pipeline laterals and related facilities proposed by Boardwalk Pipeline subsidiary Texas Gas Transmission LLC.

As Alaska Gov. Frank Murkowski prepares to pass along to the next governor the results of two years of work on a gas pipeline contract with major producers BP, ExxonMobil and ConocoPhillips, at least two of the three candidates, Republican Sarah Palin and Democrat Tony Knowles, indicated they will start the process with an open competition among multiple pipeline project proposals. The third candidate, Independent Andrew Halcro, favors using the Murkowski negotiated deal as a base but with significant modifications.

Second quarter physical gas sales volumes showed large cracks beginning to form in the foundation of the energy merchant business. The credit and liquidity crisis was growing rapidly during the quarter and the effects of the regulatory investigation into round-trip trading had taken hold. While there still were large volume increases compared to the previous year’s second quarter (a 38 Bcf/d increase for the top 20), an estimated 10.7 Bcf/d decline in volumes appeared compared to the first quarter of this year. All signs currently point to much greater declines as the year progresses.

Second quarter physical gas sales volumes showed large cracks beginning to form in the foundation of the energy merchant business. The credit and liquidity crisis was growing rapidly during the quarter and the effects of the regulatory investigation into round-trip trading had taken hold. While there still were large volume increases compared to the previous year’s second quarter (a 38 Bcf/d increase for the top 20), an estimated 10.7 Bcf/d decline in volumes appeared compared to the first quarter of this year. All signs currently point to much greater declines as the year progresses.

The cornerstones to build a sound energy supply and delivery foundation in the United States are flexibility, access to development, and coordinated energy policies, according to Cambridge Energy Research Associates Chairman Daniel Yergin. Speaking at the National Energy Summit sponsored by the U.S. Chamber of Commerce this week, Yergin warned that the country could no longer take energy for granted, and echoed calls for a strong energy policy to guarantee economic growth.

The cornerstones to build a sound energy supply and deliveryfoundation in the United States are flexibility, access todevelopment, and coordinated energy policies, according toCambridge Energy Research Associates Chairman Daniel Yergin.Speaking at the National Energy Summit sponsored by the U.S.Chamber of Commerce this week, Yergin warned that the country couldno longer take energy for granted, and echoed calls for a strongenergy policy to guarantee economic growth.