Ready

You probably don’t need a pocket calculator to determine that the market isn’t exactly ready right now for imported liquefied natural gas (LNG). But according to a new study by PIRA Energy Group, prices should average more than $3/MMBtu at the Henry Hub through 2015, creating an solid market over the long-term in the United States for a worldwide LNG supply that is expected to more than double over the next decade.

Maritimes & Northeast Pipeline said it is ready to expand its system to 1 Bcf/d to make room for new gas supply from offshore Nova Scotia and to serve growing electric generation load in the Northeast. The pipeline company is holding an open season for its Phase IV expansion through Sept. 21.

Houston-based energy marketer Dynegy Inc. is joining an impressive list of companies poised to build U.S.-based liquefied natural gas (LNG) facilities, announcing Thursday it will construct a plant at its existing liquefied petroleum gas terminal site in Hackberry, LA. Because the Gulf Coast site is already developed, the facility could be operational two to three years sooner than a greenfield project, with the first phase of commercial operation set for the end of 2003.

Houston-based energy marketer Dynegy Inc. is joining an impressive list of companies poised to build U.S.-based liquefied natural gas (LNG) facilities, announcing Thursday it will construct a plant at its existing liquefied petroleum gas terminal site in Hackberry, LA. Because the Gulf Coast site is already developed, the facility could be operational two to three years sooner than a greenfield project, with the first phase of commercial operation set for the end of 2003.

Highlighting TransAlta’s increased attention to the generation side of its business, the company last Thursday said that it has signed an agreement to sell its Alberta-based transmission business to a consortium of companies collectively known as AltaLink.

Highlighting TransAlta’s increased attention to the generation side of its business, the company yesterday said that it has signed an agreement to sell its Alberta-based transmission business to a consortium of companies collectively known as AltaLink.

Key Senate members of the Florida delegation weren’t ready to declare a full victory after the Bush administration, in a compromise gesture earlier this week, significantly scaled back plans to allow oil and natural gas drilling in the eastern Gulf of Mexico.

Maritimes & Northeast Pipeline (M&NP) said its Point Tupper Lateral is now ready to deliver gas to customers in Point Tupper. The lateral was placed in service June 30. Following construction of a pressure reducing station, M&NP was granted final Leave-to-Open by the National Energy Board (NEB) on June 27. Final commissioning of the facilities took place over the past three weeks. “It is yet another milestone towards our target of establishing a 2 Bcf/d system by 2010 serving markets in the Maritimes, Eastern Canada, and New England,” said Phillip Knoll, president of M&NP. The Point Tupper Lateral is 37 miles long and extends from the M&NP mainline to Point Tupper, NS. M&NP closed the purchase of the lateral from Sable Offshore Energy Inc. on June 22. The lateral will serve the Sable fractionation plant, StoraEnso and CGC, Inc. in Point Tupper.

If you trade natural gas, yesterday was a good day to be glued to your chair. Approximately eight minutes ahead of its scheduled 2 p.m. EDT release, the American Gas Association reported that a whopping 106 Bcf was added to underground storage facilities during the week ending June 15, bringing working gas in storage levels to 49% full at 1,609 Bcf. Futures reacted instantly, tumbling 15 cents to $3.75 just 10 minutes after the report was released. The prompt July contract would never recover from the initial selling surge and finished 24.7 cents lower at $3.734.