Mobile

The McIntosh salt cavern gas storage operation north of Mobile, AL, continues to grow in response to strong demand for high-deliverability storage in the Southeast region. Bay Gas Storage said earlier this month that it received expressions of interest from the market for 22 Bcf of additional storage capacity during its recent open season. It plans to add two more 5 Bcf caverns to the field with service beginning in fall of 2009.

The McIntosh salt cavern gas storage operation north of Mobile, AL, continues to grow in response to strong demand for high-deliverability storage in the Southeast region. Bay Gas Storage said Friday that it received expressions of interest from the market for 22 Bcf of additional storage capacity during its recent open season. It plans to add two more 5 Bcf caverns to the field with service beginning in fall of 2009.

Oil and gas drilling in North America appears to be on the upswing, according to oil and gas industry service companies that keep track of offshore and onshore statistics. Offshore drilling in the Gulf of Mexico was up in July more than 5% over a year ago, according to GlobalSantaFe Corp.; Baker Hughes. Inc. found that the number of rigs actively exploring domestically has increased since the beginning of the month; and the Canadian service sector reports a summer drilling boom is more than making up for a slow spring.

Transco said maintenance is scheduled for the Mobile Bay Gas Processing Plant from Sunday through Tuesday. The overall Btu content of gas on Transco’s system downstream of the plant may increase temporarily during this period.

Gulfstream Natural Gas System received the first shipment of pipe for construction of its 753-mile natural gas pipeline system. The pipe was delivered to Liberty Port in Mobile, AL, and transported to a concrete weight coating facility in Theodore, AL. “This is the largest pipeline project in the Gulf of Mexico. When you see this first shipment of pipe arrive — all 23,000 tons of it — and realize we still have 12 more shipments coming, it underscores just how enormous this project really is,” said Nancy Schultz, Gulfstream senior vice president and general manager, technical functions. “It is exciting to have reached this milestone, which marks the imminent start of physical construction.” The pipe, purchased from Berg Steel Pipe Corporation in Panama City, Fla., arrived by ship from Bremen, Germany, where it was manufactured by Berg’s parent company, Europipe. Each section of 36-inch diameter pipe, with a wall thickness of up to 1.375 inches, is 40 feet in length and weighs up to eight tons. One hundred seventy two miles of 36-inch pipe will be stored in Alabama until the scheduled start of construction in June. Additional steel pipe manufactured at Berg’s pipe mill in Panama City, Fla., is scheduled to be delivered to Port Manatee, Fla., on May 28. The pipeline is sponsored by Williams and Duke Energy and was approved by FERC in February. It will extend from Mississippi and Alabama across the Gulf of Mexico to Florida.

Gulfstream Natural Gas System received the first shipment of pipe for construction of its 753-mile natural gas pipeline system. The pipe was delivered to Liberty Port in Mobile, AL, and transported to a concrete weight coating facility in Theodore, AL. “This is the largest pipeline project in the Gulf of Mexico. When you see this first shipment of pipe arrive — all 23,000 tons of it — and realize we still have 12 more shipments coming, it underscores just how enormous this project really is,” said Nancy Schultz, Gulfstream senior vice president and general manager, technical functions. “It is exciting to have reached this milestone, which marks the imminent start of physical construction.” The pipe, purchased from Berg Steel Pipe Corporation in Panama City, Fla., arrived by ship from Bremen, Germany, where it was manufactured by Berg’s parent company, Europipe. Each section of 36-inch diameter pipe, with a wall thickness of up to 1.375 inches, is 40 feet in length and weighs up to eight tons. One hundred seventy two miles of 36-inch pipe will be stored in Alabama until the scheduled start of construction in June. Additional steel pipe manufactured at Berg’s pipe mill in Panama City, Fla., is scheduled to be delivered to Port Manatee, Fla., on May 28. The pipeline is sponsored by Williams and Duke Energy and was approved by FERC in February. It will extend from Mississippi and Alabama across the Gulf of Mexico to Florida.

Crews were already starting to leave platforms Thursday in theMobile Bay area, but it was hard to tell from cash priceperformances, which ranged from flat to down about a nickel.Perhaps that was because virtually no shut-ins are occurring yet, aTexas trader suggested.