Necessity

The Federal Energy Regulatory Commission issued a certificate of public convenience and necessity under Section 7 of the Natural Gas Act authorizing MoBay Storage Hub LLC, a subsidiary of Houston-based Falcon Gas Storage Co., to develop and operate the MoBay Storage Hub Project in Southern Alabama (see Daily GPI, Dec. 14, 2006).

Necessity, as they say, is the mother of invention, prompting many oil and natural gas companies, including El Paso Corp., to come up with new ways of doing business in the aftermath of Hurricane Katrina.

According to WSI Corp.’s latest forecast released Monday, lots of sunscreen and air conditioning could be a necessity this summer as the company expects temperatures to average warmer-than-normal in most locations, with the exception of the Pacific Northwest and along the western Gulf Coast, which are likely to see cooler-than-normal temperatures.

Alberta spot sales have reached C$7/Mcf (US$4.83) and centralCanadian distributors are warning customers to expect an expensivewinter. Analysts see no end to the tight markets. But natural-gasproducers say they have found a way out — tap the Arctic.

Alberta spot sales have reached C$7/Mcf (US$4.83) and centralCanadian distributors are warning customers to expect an expensivewinter. Analysts see no end to the tight markets. But natural-gasproducers say they have found a way out — tap the Arctic.

The Iroquois Gas Transmission System announced late Friday ithas filed with FERC for a certificate of public convenience andnecessity to construct a $170 million extension which the companysays will help meet gas demand in New York City. If approved, theEastchester Extension project will start service in 2002.

After advising on its bulletin board Monday that it wasmonitoring conditions for the necessity of an OFO, Florida GasTransmission issued an Overage Alert Day notice Tuesday due to highmarket-area demand. The notice applies to the system east ofStation 12 (Santa Rosa County in the Florida Panhandle) and carriesa 4% tolerance for negative daily imbalances. The pipeline willdecide this morning whether to extend the notice through today’sgas day.