Sales competition is undermining international prices for liquefied natural gas (LNG), according to ExxonMobil Corp.’s export terminal proposal for the northern Pacific Coast of British Columbia (BC). The supermajor and Canadian affiliate Imperial Oil Ltd. noted the competition in a filing with the National Energy Board (NEB) to build terminal that could export as much as 30 million metric tons a year (mmty) to overseas markets.
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Industry Brief
The California Public Utilities Commission has approved a 50% increase in the working capacity of one of the state’s largest merchant-based underground natural gas storage facilities, Wild Goose Storage LLC, north of Sacramento. Regulators unanimously agreed that Wild Goose may expand its working capacity from 50 Bcf to 75 Bcf, the third expansion since it was opened as the state’s first competitive storage facility in 1999. Wild Goose is interconnected with two major gas transmission pipelines of San Francisco-based combination utility Pacific Gas and Electric Co., which operates its own network of underground storage facilities in Northern California, totaling more than 100 Bcf of working capacity.
Outages Drop Marcellus Points As Low As 40 Cents; Futures Gain
Physical natural gas prices tumbled 8 cents overall in Wednesday’s trading as traders prepared for the Independence Day holiday, and many sections of the country expected to see mild weather. Nearly all points were in the red, and Northeast points bucked the downtrend, but a couple of points in the Marcellus suffered losses of over a dollar or more.
Deep Panuke Still in Holding Pattern
The Deep Panuke natural gas production facility offshore Nova Scotia is “closer to natural gas production but not quite there yet,” an Encana Corp. spokeswoman said Tuesday.
Macondo Flowed Less Oil than Government Claims, Says Expert
The Macondo well blowout spilled much less oil than the U.S. government estimates of 4.9 million bbl, according to a reservoir engineering expert hired by operator BP plc.
California Points Score Heat-Related Gains; Futures Drift Higher
Physical natural gas prices on average gained a penny in trading for Tuesday deliveries, but California prices soared as next-day power made huge weather-driven gains. Northeast locations were also strong, but many market hubs were flat to within a couple of pennies higher or lower.
Cyber Attacks on U.S. Oil, Natural Gas Operators Increasing
Cyber attacks on the oil and gas industry ranging from espionage by foreign intelligence services to attempts to interrupt a company’s physical operations are posing “an increasingly challenging problem for U.S. national security and economic competitiveness,” according to a new study by the Council on Foreign Relations (CFR).
Industry Briefs
The U.S. Court of Appeals for the District of Columbia Circuit has upheld a ruling by the U.S. District Court for the District of Columbia that found the Commodity Futures Trading Commission (CFTC) did not act illegally in promulgating Dodd-Frank regulations. The Investment Company Institute and the U.S. Chamber of Commerce brought the action against the CFTC, arguing that the adopted regulations applying to derivatives trading were unlawfully adopted and invalid. The district court “granted summary judgment in favor of the Commission. Because we agree with the district court that the Commission did not act unlawfully in promulgating the regulations, we affirm,” ruled the appeals court. Specifically, the two groups challenged a rule that would subject registered investment companies (RIC) engaged in derivatives trading to many of the Dodd-Frank requirements. Prior to 2003, RICs engaged in rare derivatives trading activities, but that has since changed, according to the CFTC. It is the agency’s latest legal victory with respect to its Dodd-Frank regulation of the $300 trillion.
Marcellus Gas Wells — Dry or Wet — Competing with Bakken
Given current commodity prices, natural gas wells drilled in the Marcellus Shale — wet or dry — compete favorably with marginal Bakken Shale oil wells, but that’s the only gas play in the U.S. onshore that today can compete with Bakken oil well economics, according to an analysis by Barclays Capital.
Revised British Shale Gas Resource Could Equal Barnett or Marcellus
The Bowland-Hodder Shale of northern England has between 822 and 2,281 Tcf of natural gas in place, according to a new study that is the first to integrate all existing seismic data, geological analyses and well samples from the shale, the British Geological Survey (BGS) said Thursday. The assessment is higher than earlier estimates.