Nisource

NiSource Inc. disclosed that a federal investigation is underway into the natural gas pipeline explosions in September that rocked neighborhoods in the Greater Lawrence area of Massachusetts, killing one man.

Columbia Gas of Massachusetts on Sunday said it would “completely replace” the natural gas distribution system in the Merrimack Valley after a series of explosions and fires last Thursday killed one man and damaged or destroyed around 80 structures.

Columbia Gas of Pennsylvania has filed a request with the state’s Public Utility Commission (PUC) asking for a $46.2 million annual revenue increase to help fund $186 million in infrastructure and safety upgrades that it has planned for its 26-county service area this year.

In a bid to loosen the natural gas capacity constraints that are plaguing the Marcellus Shale region and wreaking havoc on associated pricing points, upgrades in the form of pipeline loops and compression upgrades are coming online virtually every week.

NiSource Midstream Services LLC’s Big Pine Gathering System in the heart of the Marcellus Shale has begun serving XTO Energy Inc. under a long-term agreement. The 57-mile, 20- and 24-inch diameter system stretches into Pennsylvania’s Allegheny, Butler, Armstrong, Indiana and Westmoreland counties and interconnects to the Columbia Gas Transmission system, as well as Texas Eastern Transmission and Dominion Transmission. The system is anchored by XTO; a separate gathering agreement was recently signed with PennEnergy.

Columbia Gas Transmission Corp. (CGT), a NiSource Inc. subsidiary, has applied for FERC approval of a pair of projects designed to collectively increase the company’s transportation capacity out of the Marcellus Shale by an additional 444,000 Dth/d.

A proposal by NiSource subsidiary Energy Interchange to provide hub and storage services in Louisiana and Mississippi has come under sharp attack from shippers on affiliate Columbia Gulf Transmission.

New Hampshire-based Unitil Corp. closed its $201.6 million purchase of Northern Utilities Inc. and Granite State Gas Transmission Inc. from NiSource Inc. The deal was announced Feb. 19 (see Daily GPI, Feb. 20). A utility holding company with electric and natural gas distribution utilities spread around New England, Unitil absorbed 81 employees and 52,000 retail gas customers making up Northern and Granite’s distribution operations. Unitil’s utilities now employ 430 workers and serve about 167,000 customers in 71 cities and towns in Massachusetts, Maine and New Hampshire. The purchase price was $160 million, plus $41.6 million for working capital, including about $33.9 million of gas storage inventory. Unitil said there was no acquisition premium. Unitil said it expects to close soon on long-term debt financing of $90 million, and to raise additional capital through the issuance of common stock.

NiSource Gas Transmission & Storage (NGT&S) officials, saying natural gas shippers showed a strong interest in new storage and transportation capacity at a storage field south of Columbus, OH, during a recent nonbinding open season, announced last Tuesday that they will hold a binding open season until July 31.