Proposals

The Bush administration has turned a deaf ear to Sen. Jeff Bingaman’s (D-NM) recommendations on how the president can use his existing authority to cut high-flying natural gas prices and bolster supply.

The long-proposed northern natural gas pipeline appears to be a close horse race between the Alaska project and the Canadian Mackenzie Delta project, one long-time observer said last week.

The long-proposed northern natural gas pipeline appears to be a close horse race between the Alaska project and the Canadian Mackenzie Delta project, one long-time observer said Tuesday.

Rep. Lois Capps (D-CA) on Wednesday offered a motion on the House floor that directed conferees on the national energy bill to strike provisions calling for the federal government to inventory oil and natural gas resources in the Outer Continental Shelf (OCS), and to respond to appeals of state permitting decisions under the Coastal Zone Management Act (CZMA) within a compressed time frame. The House postponed a vote on the motion until next Wednesday.

While proposals to open up untouched areas in Alaska and off the U.S. coasts have gotten more headlines, the Independent Petroleum Association of America (IPAA), whose members produce 75% of the domestic U.S. gas supply, is happy with provisions in the current energy bill that will increase access to federal lands in the lower 48 and provide financial incentives for small producers to drill.

Fueled by the abundance of liquefied natural gas (LNG) receiving terminal proposals in the northwest corner of Mexico, the North Baja Pipeline reported Thursday that its six-month open season for expanded future capacity drew interest totaling about 5.5 Bcf/d. The current pipeline running from the Arizona-California border through the northern end of Baja is fully subscribed for its 500 MMcf/d capacity.

Fueled by the abundance of liquefied natural gas (LNG) receiving terminal proposals in the northwest corner of Mexico, the North Baja Pipeline reported Thursday that its six-month open season for expanded future capacity drew interest totaling about 5.5 Bcf/d. The current pipeline running from the Arizona-California border through the northern end of Baja California Norte is fully subscribed for its 500 MMcf/d capacity.

Natural gas storage proposals are alive and well in Arizona, but when one of them is going to turn into an actual project is still anybody’s guess, following last Tuesday’s (Aug. 26) Federal Energy Regulatory Commission staff conference in Phoenix. FERC staff promised a “report” on the meeting, but nothing more tangible emerged.

One day after Kinder Morgan Energy Partners LP (KMP) and Nicor Inc. announced plans for a joint pipeline project from the Rockies to the Midcontinent, Enbridge Inc., part owner of Alliance and Vector pipelines, reported that it is considering a 1 Bcf/d straight shot out of the Rockies to Chicago. Also throwing its hat into the Rockies ring (again), Kern River Gas Transmission said it is considering another 500 MMcf/d expansion of its line to California.