Projects

Houston-based SGR Holdings LLC is planning a new 16 Bcf salt cavern natural gas storage facility in Greene County, MS, and has plans for two more high deliverability storage facilities in the Gulf Coast region.

Much of the 60,000 MW of dual-fuel power generation in the United States will be burning natural gas this winter rather than heavy fuel oil in contrast to last winter when record high gas prices compelled generators to burn anything but gas, consulting firm Energy Security Analysis Inc. (ESAI) said in its latest Natural Gas Stockwatch.

Much of the 60,000 MW of dual-fuel power generation in the United States will be burning natural gas this winter rather than heavy fuel oil in contrast to last winter, when record high gas prices compelled generators to burn anything but gas, consulting firm Energy Security Analysis Inc. (ESAI) said in its latest Natural Gas Stockwatch.

Avista Corp., headquartered in Spokane, WA, announced Wednesday it plans to implement several measures to improve its liquidity, conserve cash and reduce its debt. Rocked by internal problems and federal investigations of its Avista Energy unit that resulted in a $2 million fine, the company plans to sell 50% of its stake in the 280 MW Coyote Springs 2 power project under construction near Boardman, OR, to Mirant and reduce its utility capital expenditures by $15 million through the end of this year and another $40 million in 2002.

Citing a host of poor fundamentals for the natural gas market, the Energy Information Administration (EIA) projects that spot gas prices will drop 62% to an average of $2.21/Mcf this winter from $5.78/Mcf last winter. It said it doesn’t see spot prices rising above the $2.50/Mcf level anytime during the fourth quarter and 2002. The EIA now estimates the average spot price for 2001 will be about $4/Mcf.

Coalbed methane is booming and the Powder River Basin has the pipeline projects to prove it. Plans for two new gathering lines were revealed last week, one for a Wyoming intrastate which will have some service in place by the end of the year, and an interstate proposed by Williston Basin Interstate Pipeline Co. to travel 245 miles through Wyoming, Montana and North Dakota. In the meantime Northern Border Pipeline said it will be conducting an open season for its proposed Bison Pipeline. All three lines have a terminus in the vicinity of Gillette, WY.

With the withdrawal of pipeline projects upstream of Millennium in Canada by some of the pipeline’s sponsors, the Town of Cortlandt, NY, has asked FERC to hold the application for the 442-mile U.S. pipeline in abeyance until the project’s sponsors can explain the situation.

With the withdrawal of pipeline projects upstream of Millennium in Canada by some of the pipeline’s sponsors, the Town of Cortlandt, NY, has asked FERC to hold the application for the 442-mile U.S. pipeline in abeyance until the project’s sponsors can explain the situation.

While federal regulators may be a bit “bearish” on natural gas pipeline projects, that’s a good thing, according to PG&E Gas Transmission Northwest, which is still waiting for its final okay from the Federal Energy Regulatory Commission on environmental safeguards for its certificated 2002 pipeline expansion in Idaho and a small part of Washington state. It expects the final, final okay by the end of this week.