natural gas prices

West Virginia Gov. Earl Ray Tomblin plans to use his executive powers to change a state law passed earlier this year that requires stringent regulation of above-ground storage tanks (see Shale Daily,Feb. 14). The law was passed in response to a January incident in which thousands of gallons of coal-cleaning chemicals leaked from a processing facility on the Elk River. It requires the West Virginia Department of Environmental Protection (WVDEP) to inspect storage tanks annually. That rankled a number of industries, including smaller oil and gas companies. Tomblin’s administration is pushing for a system that will require strict inspection standards for tanks that hold more than 50,000 gallons, those near water supplies and those that hold hazardous materials. That will help reduce the number of tanks, such as smaller ones used by the oil and gas industry, that WVDEP will have to closely oversee. Smaller tanks will still be subject to the law, but compliance and inspections will be less extensive under Tomblin’s changes. Updated rules for larger tanks are expected in the coming weeks.

Buyers of weekend and Monday gas weren’t fooled by forecasts in the East calling for 90-plus degree readings over the weekend and instead looked at Monday’s expected free-fall in forecast temperatures along with a weak power sector.

Kinder Morgan Energy Partners LP is holding a binding open season for its previously announced Utica To Ontario Pipeline Access (Utopia) project, which would transport ethane and ethane-propane mixtures from the Utica Shale. Kinder Morgan Cochin LLC would construct, own and operate a 240-mile, 12-inch diameter pipeline from Harrison County, OH, to Kinder Morgan’s Cochin Pipeline near Riga, MI, where the company would then move product eastward to Windsor, ON (see Shale Daily,Dec. 16, 2013). Utopia would transport previously refined or fractionated natural gas liquids (NGL), including ethane and propane, with an initial 50,000 b/d of capacity, which would be expandable to more than 75,000 b/d. Pending a successful open season and regulatory approvals, Utopia could be in service by early 2018. For information, visit www.kindermorgan.com or contact Karen Kabin at karen_kabin@kindermorgan.com, (713) 369-9268.

Prices for the week ended Sept. 5 for the most part were mired in a sea of red ink, with only the Northeast making it into positive territory. That was enough, however, to keep the national average at only a modest penny loss.

Natural Gas Vehicle (NGV) fuel and fueling station developer Clean Energy Fuels Corp. at the end of last month was granted a natural gas export approval from the U.S. Department of Energy (DOE) to cover Canada, Mexico and other free trade agreement (FTA) nations. A Clean Fuels spokesperson told NGI the Newport Beach, CA-based company has no intention of getting into the full-scale LNG export business, although it is working on a containerized LNG project that involves the gas utility in Hawaii (see Daily GPI,April 10). Such shipments to another state such as Hawaii do not require DOE authorization. Clean Energy is negotiating with two Canadian trucking companies that plan to switch their fleets to run on LNG, and the DOE export authorization is a means for fuel supplier to serve the Canadian market. The DOE authorization is for a two-year period covering LNG shipments by truck, rail, barge or other waterborne vessel up to a combined total supply equivalent of 100 Bcf.

Physical traders Thursday made sure they got their deals done before the Energy Information Administration (EIA) storage report and they elected to sell and sell often. Prices at some Northeast points tumbled by double digits ahead of a cold front, but for the most part the day’s broad decline was limited to a few pennies.

A week after an inquiry reported that hydraulic fracturing (fracking) frightens the public in Nova Scotia, the province’s Liberal government promised Wednesday to ban the practice.

Natural gas futures fell following the release of government storage figures that were somewhat greater than what traders were expecting.

Two natural gas vehicle (NGV) organizations have issued early warnings about severe cold weather and its possible effect on vehicles operating on compressed natural gas (CNG). With more of these vehicles operating on U.S. roadways, the groups are warning CNG providers and operators alike.