Indicated

Chairman Rick Boucher (D-VA) of the House Energy and Air Quality Subcommittee last Wednesday indicated he was on the fence about a proposal that calls on Congress to repeal the mandatory requirement for natural gas pipelines to reinspect their systems every seven years.

Senate Majority Leader Harry Reid (D-NV) has indicated he will move forward with an energy bill (HR 6) that includes a slightly larger tax package ($21.8 billion), ignoring threats of a counterattack by Republicans and a possible veto by President Bush.

San Diego-based Sempra Energy indicated at the start of this month that it is on target to start first shipments of liquefied natural gas (LNG) in early 2008 at its Costa Azul facility on the Pacific Coast of North Baja California, Mexico, and in 2009 at its Cameron facility on the Louisiana Gulf Coast. CEO Donald Felsinger gave the latest status report during a third quarter earnings conference call Nov. 1, noting the Baja California plant will add a $125 million nitrogen injection unit at the request of one of the terminal’s shippers.

A House source indicated Thursday a contentious provision may be struck from the Coast Guard reauthorization bill (HR 2830) that would require the Department of Homeland Security to sign off on liquefied natural gas (LNG) projects.

A House source indicated Thursday that a contentious provision may be struck from the Coast Guard reauthorization bill (HR 2830) that would require the Department of Homeland Security to sign off on liquefied natural gas (LNG) projects.

The story, “Constellation E&P Expands CBM Holdings in the Cherokee Basin,” which was published on July 16, indicated that Constellation Energy Partners (CEP) had agreed to buy AMVEST Osage Inc. from the Osage Indian Nation. However, AMVEST Osage is a subsidiary of AMVEST Corp., a privately held corporation. As part of the transaction, CEP obtained a 13-year exclusive concession agreement from the Osage Indian Nation for coalbed methane and shale rights on 560,000 net contiguous acres. NGI regrets the error.

Tennessee indicated that repairs to correct problems caused by liquids entering Station 823 may be proceeding faster than expected. Barring any unexpected issues, Tennessee said Friday, it anticipated that the work would be complete in two to three days; on Wednesday it had estimated “five to 10 days” (see Daily GPI, April 19). As a result, the pipeline saw a good chance of restrictions through Station 823 being lifted by the end of the weekend. Tennessee said that as an alternative, it had analyzed the possibility of activating the Seahawk meter. “However, after further investigation, Tennessee has determined that opening the Seahawk meter is not a viable option due to a lack of flow control in the area. Without flow control, the possibility of free flowing liquids into Tennessee’s system at Grand Chenier and Kinder is too great a risk.” In an effort to assist customers in moving their gas off the Tennessee system, it was offering discounts at six meters and said “any other mutually agreeable meters upstream of Station 823” could be used.

In Mastiogale’s 10th edition of its industrywide Natural Gas Marketer Customer Value Study, respondents to survey questions indicated that “reliability of supply” was their top need when choosing a gas supplier.

In Mastiogale’s 10th edition of its industrywide Natural Gas Marketer Customer Value Study, respondents to survey questions indicated that “reliability of supply” was their top need when choosing a gas supplier.