Pipelines

Changes to the U.S. Army Corps of Engineers’ (USACE) methods of reviewing and permitting natural gas pipelines in Pennsylvania, which were instituted by the Corps July 1, will result in “substantial delays” in pipeline construction in the state’s Marcellus Shale area, according to David Spigelmyer, Chesapeake Energy vice president of government relations.

The Federal Energy Regulatory Commission Tuesday approved a request by ETC Tiger Pipeline LLC, a unit of Dallas-based Energy Transfer Partners LP, to place a 400 MMcf/d expansion of its system in service.

Inergy LP has closed on its acquisition of the Seneca Lake gas storage facility in Schuyler County, NY, and two related pipelines for about $65 million from New York State Electric & Gas Corp. Seneca Lake is a 2 Bcf salt cavern storage facility on Inergy’s U.S. Salt property outside Watkins Glen, NY. It has a maximum withdrawal capability of 145 MMcf/d and maximum injection capability of 72.5 MMcf/d. Seneca Lake is connected to the Dominion transmission system via the Seneca West Pipeline and indirectly to the citygate of Binghamton, NY, via the Seneca East Pipeline. The deal was announced in January 2010 (see Daily GPI, Jan. 12, 2010). It required the approval of the Federal Energy Regulatory Commission as well as that of the New York State Public Service Commission.

Drilling in the Haynesville Shale helped Louisiana more than double its natural gas production in April from two years ago, and production in the Lower 48 states increased 10.6% (6.66 Bcf/d) to 69.05 Bcf/d during the same time period, according to the Energy Information Administration’s (EIA) monthly natural gas report.

Because an “all-time high level” of uncompleted natural wells in the Haynesville Shale await a tie-in to pipelines, don’t expect an immediate drop-off in incremental supply as the rig count drops, analysts with Raymond James & Associates Inc. said in a note Monday.

The West Virginia Department of Environmental Protection’s (DEP) Office of Oil and Gas (OOG) has ordered Antero Resources Appalachian Corp. and Bronco Drilling Corp. to cease operations at an Antero well pad in Harrison County, WV, following a March 21 incident in which drill cuttings were washed into a nearby stream, OOG said.

NOVA Gas Transmission Ltd. (NGTL), a unit of TransCanada Corp., and ATCO Pipelines will hold meetings Feb. 28 in Edmonton and March 1 in Calgary to update customers on the ATCO/NGTL integration initiative. In September 2008 the companies said they had reached an agreement to provide seamless gas transmission service in Alberta (see Daily GPI, Sept. 10, 2008). The meetings are intended to provide an update on the initiative’s progress; review NGTL service and attributes; review ATCO/NGTL contract administration, transition and election requirements; and address shipper questions or concerns. Those planning to attend either meeting should RSVP to Laurie Summy at (403) 920-5571, or at laurie_summy@transcanada.com by Feb. 23.

The partners behind Kitimat LNG plan to acquire the 50% interest in Pacific Trail Pipelines LP they don’t already own from Pacific Northern Gas Ltd. (PNG) for $50 million. The deal is intended to support export of gas from the Horn River Basin and other Western Canada plays as liquefied natural gas (LNG) to Asian markets. Apache Canada Ltd. and EOG Resources Canada Inc. said they will pay PNG $30 million on closing, which is expected by the end of February, and make a second payment of $20 million when the partners decide to proceed with construction of the Kitimat LNG export facility at Bish Cove, BC (see NGI, Jan. 3).

The partners behind Kitimat LNG plan to acquire the 50% interest in Pacific Trail Pipelines LP they don’t already own from Pacific Northern Gas Ltd. (PNG) for $50 million. The deal is intended to support export of gas from the Horn River Basin and other Western Canada plays as liquefied natural gas (LNG) to Asian markets.