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‘Unprecedented’ NatGas Output Cuts U.S. Imports

With domestic natural gas production reaching an “unprecedented” level, net imports of gas into the United States in 2012 fell 23% while total gas exports increased about 8%, according to the U.S. Energy Information Administration (EIA).

July 29, 2013

Industry Briefs

Sabal Trail Transmission LLC, a joint venture of Spectra Energy and NextEra Energy Inc., has been named the winning bidder to build a 465-mile interstate natural gas pipeline project by Florida Power & Light (FPL) to provide transportation services for its power generations needs beginning in May 2017. FPL, the largest power company in the state, put out the request for proposals for a new pipeline in December. Sabal Trail would have an estimated price tag of $3 billion and originate in Tallapoosa County, AL, extend through Georgia and terminate at the Central Florida Hub near Orlando (see NGI, July 8). Through a capacity lease with Transcontinental Gas Pipe Line (Transco), natural gas supply would be accessed at Transco’s Station 85 in Choctaw County, AL. The pipeline, when completed, would have the capacity to transport more than 1 Bcf/d to serve local distribution companies, industrial users and natural gas-fired power generators. According to the Energy Information Administration, Florida generates 62% of its power from 1.1 Tcf of natural gas.

July 29, 2013

Spot Prices in 2013 Return to ’09-’11 Levels, Says EIA

Spot prices for U.S. natural gas at most major trading points increased on average 40-60% in the first half of 2013 (1H2013) from a year earlier as demand eclipsed supply, the U.S. Energy Information Administration (EIA) reported last week.

July 29, 2013

Range Earns $144M in 2Q on Record Production, New EURs

Bolstered by record production, especially in the southwest Pennsylvania portion of the Marcellus Shale, and revisions to its estimated ultimate recovery (EUR) curves, Range Resources Corp. reported net earnings of nearly $144 million for the second quarter of 2013.

July 26, 2013

McCarthy Confirmed as EPA Chief

The Senate Thursday confirmed Gina McCarthy to head the Environmental Protection Agency (EPA), ending a four-month long stalemate between Republicans and Democrats over her controversial nomination.

July 22, 2013

Nucor to Spend $700M-Plus to Fuel Encana’s Natural Gas Drilling

Steel manufacturer Nucor Corp. said it plans to spend more than $700 million on natural gas drilling over a two-year period to meet its contractual obligations with Encana Corp. for low-cost gas supplies.

July 22, 2013

Industry Leaseholds Face Scrutiny in Pennsylvania, Ohio

The Pennsylvania Superior Court has thrown out a lawsuit brought by Fayette County family, which wanted an oil and gas lease agreement voided by claiming that some drilling activities weren’t contemplated when the contract was executed. However, similar lawsuits in the state and in Ohio are facing new scrutiny as well.

July 22, 2013

Harvard Researcher Sees U.S. as Largest Oil Producer by ’17

The United States could produce 5 million b/d from shale oil deposits by 2017 and may become the world’s largest oil producer — reaching up to 16 million b/d in just a few years by combining shale with conventional oil, liquefied natural gas (LNG) and biofuels, according to a researcher at Harvard Kennedy School.

July 22, 2013

U.S. Dominating Global Energy M&A Market

The United States continued to crush the global merger and acquisition (M&A) market between April and June, but deal values in the first half of 2013 (1H2013) represented the lowest six-month period since at least 2007, according to a survey by PLS Inc. and partner Derrick Petroleum Services.

July 22, 2013

Industry Briefs

Tennessee Gas Pipeline has launched an open season through July 31 for firm natural gas transportation capacity on the Connecticut Expansion Project, which would deliver gas from its existing interconnect with Iroquois Gas Transmission in Wright, NY, to Zone 6 delivery points on Tennessee’s 200 and 300 Lines in Connecticut. The project, which would require upgrades and modifications to the existing pipeline system in New York, Massachusetts and Connecticut, is slated for service by November 2016. Available capacity would be about 72,100 Dth/d. The pipeline has entered into binding precedent agreements with three anchor shippers. Inexpensive shale gas has recently caught the attention of the Constitution State. In June Connecticut gas distribution utilities Yankee Gas, Connecticut Natural Gas and Southern Connecticut Gas, filed a joint gas expansion plan with the state’s Public Utilities Regulatory Authority and the Department of Energy and Environmental Protection (see NGI, June 24). The plan outlines how the utilities would meet expansion goals proposed in the Gov. Dannel Malloy’s comprehensive energy strategy and the the recently enacted HB 6360 (see NGI, March 18). The utilities plan a “structured approach” to add 280,000 new gas heating customers over the next 10 years.

July 22, 2013