FERC Friday issued a favorable environmental assessment to Millennium Pipeline Co. LLC for a natural gas compressor station project in Minisink, NY, to boost firm deliveries of Marcellus Shale gas to its interconnection with Algonquin Gas Transmission LLC at Ramapo, NY, to approximately 675,000 Dth/d to serve the Northeast and New England markets.
Keyspan
Articles from Keyspan
Williams, KeySpan to Transport 100,000 Dth/d to Northeast by Late 2007
Williams on Tuesday executed an agreement with KeySpan Energy Delivery to begin, by November 2007, transporting 100,000 Dth/d of natural gas on its Transco pipeline from Leidy, PA to growing markets in the Northeast. A formal application is expected to be filed with FERC in September.
Industry Briefs
KeySpan Energy affiliate Houston Exploration said it purchased 42 Bcfe of proved reserves in South Texas from subsidiaries of Burlington Resources for $48.1 million in cash. The producing and undeveloped properties total 24,800 gross acres in four fields in Webb, Jim Hogg, Wharton and Calhoun counties. The properties currently are producing 16 MMcfe/d. “Our expansion in South Texas is a direct result of our historical operating performance and the investment in 3-D technology that continues to improve drilling and development results,” said CEO William G. Hargett. “These new properties will continue providing operating efficiencies to our South Texas operations as they are adjacent to existing operations in the Charco Field.” The acquisition will increase Houston Exploration’s South Texas production by 15% to an average of 123 MMcfe/d and grow its total reserves by 10%. The 146 wells in the acquisition are located in the following fields: Northeast Thompsonville, South Laredo, McFarlan and Maude Traylor. The acquisition will be financed through cash flow from the company’s previously announced $250 million capital budget.
Cross Bay Pipeline to New York City Gets FERC Nod
Although it harbored a few concerns, FERC last week gave certificate authorization to Cross Bay Pipeline Co. LLC of Houston last Wednesday to assume ownership of a 37-mile portion of Transcontinental Gas Pipe Line’s Lower New York Bay Extension and add 16,000 hp of compression in Middlesex County, NY, in order to boost gas deliveries into New York City by about 125,000 Dth/d. The Cross Bay project, first announced in January 1998, is estimated to cost $59.5 million.
Six Utilities Form Energy E-Procurement Site
CMS Energy, Ameren Corp., KeySpan and UGI Corp. have joinedAllegheny Energy, Allete (formerly Minnesota Power) and PPL Corp.in the formation of Enporion Inc., a global e-procurement exchangefor the energy industry. The companies see the potential for bigsavings in pooling their buying power over the new exchange.
Six Utilities Form Energy E-Procurement Site
CMS Energy, Ameren Corp., KeySpan and UGI Corp. have joinedAllegheny Energy, Allete (formerly Minnesota Power) and PPL Corp.in the formation of Enporion Inc., a global e-procurement exchangefor the energy industry. The companies see the potential for bigsavings in pooling their buying power over the new exchange.
Industry Briefs
KeySpan filed an application with the New York State PublicService Commission to expand the generating capacity of itsRavenswood power plant in Long Island City by 250 MW. Whencompleted in 2003, the expanded power plant, which will beprimarily fueled by natural gas, will be the cleanest and mostefficient generating station in New York City. Today, Ravenswood isthe city’s largest power plant with a capacity of 2,168 MW, or 28%of the electric generation located in New York City. “New York Cityhas a critical need for electric power,” said Chairman Robert B.Catell. “An expanded Ravenswood power plant would help ensure thatthe city has adequate capacity to meet the ever-increasing demandfor electricity.” This year, New York City is 300 MW short ofmeeting its reliability requirement for in-city electric-generationcapacity, and the city’s demand for electricity continues to growat the rate of 150 MW per year, the company said.
Industry Briefs
Gulf Midstream Services (GMS), a partnership between KeySpanEnergy Development Co. (KEDC) and Gulf Canada Resources, enlargedits Canadian midstream presence last week by announcing anagreement to buy Barrington Petroleum’s 38% interest in the PaddleRiver gas plant and related gas gathering systems. The $9 millionpurchase gives the partnership 76% interest in the only plant thatwill be directly connected to both the ATCO Pipeline system and theAlliance Pipeline. The Paddle River facilities are located 62 mileswest of Edmonton, AB. The plant is capable of processing up to 82MMcf/d of raw sour gas. With current throughput of about 42 MMcf/d,the plant’s unutilized capacity represents a significantopportunity, GMS said. “With increased industry activity in thearea and the Alliance Pipeline connection, we expect this plant tobe an attractive long-term investment for KEDC,” said GMS presidentJim Bertram.
Gulf Midstream Lengthens Canadian Reach
Gulf Midstream Services (GMS), a partnership between KeySpanEnergy Development Co. (KEDC) and Gulf Canada Resources, enlargedits Canadian midstream presence yesterday by announcing anagreement to buy Barrington Petroleum’s 38% interest in the PaddleRiver gas plant and related gas gathering systems. The $9 millionpurchase gives the partnership 76% interest of the only plant thatwill be directly connected to both the ATCO Pipeline system and theAlliance Pipeline.
People
The Gas Research Institute re-elected Robert Catell, CEO ofKeyspan, as chairman of the Institute’s board of directors. Hejoined the board in 1992. It will be Catell’s second one-year termas chairman. Stanley Horton, CEO of Enron Gas Pipeline Group, wasrenamed vice chairman.