Pressure

The Pacific Gas and Electric Co. (PG&E) San Bruno pipeline rupture last year was caused by none of the usual suspects when it comes to high-pressure natural gas transmission pipeline failures, the National Transportation Safety Board (NTSB) made clear in its final report adopted by the five-member panel in Washington, DC, Tuesday (see Daily GPI, Aug. 31).

In the aftermath of a continuing string of natural gas pipeline/infrastructure failures, the pressure from federal and state regulators will grow and so too will the capital expenditures (capex) among utilities and large transmission pipeline operators, according to Southwest Gas Corp. CEO Jeffrey Shaw. He made the observations earlier in August in response to questions from financial analysts.

Effective Friday Southern California Gas will voluntarily decrease the maximum operating pressure on its Line 2000 in the Southern Transmission Zone by approximately 20%. “This change is being made to further improve and maintain the safety of SoCalGas’ pipeline network,” the giant LDC said. Affected pipeline runs from Blythe in Riverside County to Brea Station in Orange County, SoCalGas said. Customers served from Line 2000 may experience lower delivery pressures, and total receipt point capacity at El Paso-Ehrenberg and North Baja-Blythe will be limited to 1,010 MMcf/d, it added. See the bulletin board for further details.

Congressional Republicans are facing mounting pressure from the White House to rescind oil and natural gas tax breaks in a deal aimed at reducing the federal deficit and raising the debt ceiling. Producers say they plan to fight to retain the tax breaks, but they concede that it won’t be easy if the repeal of industry tax deductions is part of a “grand bargain” to cut the deficit.

Congressional Republicans are facing mounting pressure from the White House to rescind oil and natural gas tax breaks in a deal aimed at reducing the federal deficit. Producers say they plan to fight to retain the tax breaks, but they concede that it won’t be easy if the repeal of industry tax deductions is part of a “grand bargain” to cut the deficit.

Southern California Gas ended a high-linepack OFO after it had been in effect for Saturday only.

DCP Midstream LLC plans to build a 110 MMcf/d gas processing plant and high-pressure gathering system in Weld County, CO, to augment its position in the Denver-Julesburg (DJ) Basin, the company said Tuesday.

U.S. natural gas prices will remain under pressure for one to two more years because ample gas supplies haven’t budged despite a cold winter, and consumption has failed to keep pace with the economic recovery, a Standard & Poor’s (S&P) credit analyst said Wednesday.

U.S. natural gas prices will remain under pressure for one to two more years because ample gas supplies haven’t budged despite a cold winter, and consumption is failing to keep pace with the economic recovery, a Standard & Poor’s (S&P) credit analyst said Wednesday.