Infrastructure

The House Transportation and Infrastructure Committee Wednesday approved the proposed Pipeline Safety Improvement Act of 2006, reauthorizing the current pipeline safety law which was set to expire this year. The bill was introduced by committee Chairman Don Young, R-AK and Rep. Thomas Petri, R-WI. The American Gas Association said it was pleased the bill included a focus on prevention of excavation damage to pipelines, the single largest cause of incidents on the natural gas distribution system. The bill encourages stronger state damage prevention programs through financial incentives and increases penalties for failing to use the one-call system or failure to mark pipelines. The Senate still must act on the bill.

As a result of recent major investments in the infrastructure of its natural gas business and rising operating expenses, Ameren Corp. subsidiary AmerenUE said Friday it has filed a request with the Missouri Public Service Commission (MoPSC) for an $11 million increase in natural gas delivery rates for its approximately 125,000 Missouri gas customers.

While the global liquefied natural gas (LNG) infrastructure is being built on the back of long-term contracts, Excelerate Energy LP has begun to see its merchant model bear fruit as cargo fungibility and an LNG spot market continue to develop.

In an effort to provide natural gas customers with the necessary infrastructure to “support growth, choice and competition,” Guardian Pipeline LLC said Tuesday it has signed precedent agreements with two major Wisconsin utility companies for expansion of transportation capacity in eastern Wisconsin.

Despite the widespread destruction of Gulf of Mexico infrastructure from Hurricanes Katrina and Rita last year, the lengthy and expensive restoration process and the ongoing risks of offshore operations, deepwater exploration and development is moving full steam ahead, said Chris Oynes, Minerals Management Service (MMS) regional director for the Gulf of Mexico, in an interview with NGI.

Following the damage to Gulf Coast and Gulf of Mexico production and pipeline infrastructure from last year’s hurricanes, natural gas consumption for power generation and thermal output plummeted 9% to 492.4 Bcf in October compared to the same month in 2004, the Energy Information Administration reported Wednesday in its Electric Power Monthly publication. EIA said the bulk of the lost fuel was made up through a 43.1% increase in petroleum liquids consumption by generators. October 2005 net generation fell nearly 10% from September levels to 315 million MWh but was up 0.8% from October 2004 levels.

The Minerals Management Service (MMS) said last Monday that because of the lack of progress in restoring Gulf infrastructure damaged by the hurricanes it would begin reporting offshore production shut-ins only twice a week instead of daily going forward. Over the last three weeks, an average of about 40 MMcf/d has been added to the market, compared to more than double that during the month of November.

The Minerals Management Service (MMS) said Monday that because of the lack of progress in restoring Gulf infrastructure damaged by the hurricanes it will begin reporting offshore production shut-ins only twice a week instead of daily going forward.

The Energy Information Administration in its Short-Term Energy Outlook for December projects a speedier recovery for hurricane-impaired Gulf of Mexico natural gas infrastructure, citing the innovative methods producers are employing to reroute their gas around damaged pipelines to reach working processing plants.