natural gas

A bill intended to help Louisiana’s energy industry clear the decks of what it considers to be exploitative lawsuits is on its way to the desk of Gov. Bobby Jindal, who is a supporter of the measure. Meanwhile, industry is watching the progress of legislation to quash lawsuits that could put companies on the hook for billions in past coastal damage.

In a game-changing transaction Wednesday, China agreed to buy $400 billion of Russia’s natural gas over 30 years, allowing Russia to diversify its market at a time when tensions with U.S. and European nations have escalated.

Gulf LNG Liquefaction Co. LLC has beencleared to enter the Federal Energy Regulatory Commission pre-filing process for the proposed addition of natural gas liquefaction and export capability at its existing liquefied natural gas (LNG) import facility in the Port of Pascagoula in Jackson County, MS. The project would also include terminal and pipeline modifications to allow for bidirectional flow of gas to and from the facility. Up to 10.5 million tons/year of LNG would be produced from up to 1.5 Bcf/d of gas. Gulf LNG told FERC it intends to file its application for the project in April 2015. Kinder Morgan Inc. is operator of the terminal and backer of the project along with GE Energy Financial Services. According to Kinder Morgan, a final investment decision on the project is expected during 4Q2016 with the first train potentially operating in late 2019.

The Energy Information Administration (EIA) has cut its estimate of recoverable oil in California’s Monterey Shale to 600 million bbl, a 96% decrease from previous estimates, an agency spokesman told NGI’s Shale Daily Wednesday.

Growing crude oil production from the Eagle Ford Shale has prompted Koch Pipeline Co. LP to expand its South Texas system by 24 miles in San Patricio County. A new 16-inch diameter pipeline would have initial capacity of 200,000 b/d and is expected to enter service during the second quarter. “…[T]his new pipeline will help us move domestic crude to the U.S. market more efficiently by using a combination of new and existing pipeline infrastructure,” said Executive Vice President Bob O’Hair. The company operates about 540 miles of active crude oil transportation lines in Texas.

Physical gas prices for Thursday delivery staged a modest advance Wednesday, with nearly all points in the black by a few pennies up to a nickel. Those few locations that eased did so on light volume and slipped just a penny or two.

The California Public Utilities Commission (CPUC) is seeking a new director for its safety and enforcement division to lead a staff of more than 200 inspectors, engineers and analysts. The unit has been expanded since the 2010 San Bruno, CA, natural gas transmission pipeline rupture and explosion (see Daily GPI,July 26, 2013; May 13, 2013).

The oil and gas industry recognizes that it is in its best interest to assure the public that hydraulic fracturing (fracking) is being done safely, but it is wary of the federal government enacting its own regulations on the practice. Meanwhile, manufacturers are concerned about the feds allowing too much liquefied natural gas (LNG) to be exported.

Physical gas for delivery Wednesday moved modestly higher with market moves for the most part confined to advances of less than a nickel. Only a few locations reported declines. The market largely reflected relatively benign conditions of modest temperatures, maintenance, and lack of price-moving cooling load.