Pipeline

In an OFO notice, Questar said effective Thursday until further notice, it will not accept any due-pipeline imbalance payback nominations. “Due to the high inventory levels at Clay Basin [storage facility], the upcoming reservoir conditioning and injection test…Questar is restricting the receipt of gas that cannot be injected into Clay Basin or absorbed within system linepack.”

ANR Pipeline should be directed to credit the net revenues from a sale of 2.6 Bcf of “excess” storage gas to its shippers rather than be allowed to keep them, ConocoPhillips Co. told FERC last week.

El Paso Natural Gas and a large number of shippers on its pipeline have called on FERC again to quickly approve an offer of settlement that has been pending at the agency for several months.

El Paso Natural Gas and a large number of shippers on its pipeline have called on FERC again to quickly approve an offer of settlement that has been pending at the agency for several months.

Energas Resources Inc. has reactivated oil and natural gas production in the Parkway Project in Kentucky after gas testing met pipeline requirements. The company’s field personnel have converted two of the first four wells to electric pump jacks utilizing a timing system to stabilize flow rates and pressure. The two wells have produced approximately 66 MMBtu/d of natural gas and 2 b/d of oil since May 23. Energas is now reevaluating the development strategy and proposed treatment methods for the Parkway Project.

National Fuel Gas Supply Corp., the principal pipeline and storage subsidiary of National Fuel Gas Co., said its recent nonbinding open season (see Daily GPI, March 27) to offer 500 MMcf/d of capacity or more to Leidy, PA, and/or the proposed Empire and Millennium interconnects received “robust market interest.” Bids for transportation service totaled nearly 1 Bcf, the company said. Bids included proposed transportation services from gas supply sources in the Appalachian region of western Pennsylvania, the Rocky Mountain basin via Rockies Express at Clarington, OH, and the Market Hub at Leidy. National Fuel said it is assessing what facilities would be required to accommodate the services requested and expects to begin discussions with those who requested service.

Kinder Morgan Inc. subsidiary Natural Gas Pipeline Company of America (NGPL) is holding a binding open season for incremental storage capacity in its 2009 expansion project, which, as planned, will provide an additional 10 Bcf of firm capacity.

Chevron Corp.’s combined U.S. liquids and natural gas production fell an estimated 3% sequentially in 1Q2007 from 4Q2006 following third-party pipeline downtime that affected operations in the Gulf of Mexico and the San Joaquin Valley, the company said in an interim quarterly update. Combined international output also fell 1%.

Chevron Corp. executives told told financial analysts last Tuesday that the company would increase its production by 3% per year and that spending on exploration and production would remain strong in the coming years. In the years ahead, natural gas will account for a greater share of Chevron’s production portfolio as the company strives to be a leader in increasingly globalized gas markets.