Routes

The proposed route and two alternative routes for Spectra Energy Corp.’s proposed Texas Eastern Transmission (Tetco) natural gas pipeline bisect a “very complicated” 66-acre property in Bayonne, NJ, owned by Texaco Downstream Properties Inc. (TDP) and should be realigned, the Chevron affiliate said in a Federal Energy Regulatory Commission filing. The site, which was previously a lubricant blending facility and light products terminal, “is well along in the approval process” to be redeveloped into a residential development, according to TDP. Chevron requested that the pipeline route be realigned, “preferably off the property, but at a minimum to an area on the property that does not interfere with the ongoing remediation, the unique physical characteristics of the property or the planned redevelopment of the site.” Chevron and Spectra both say they are working together to try to resolve the issue. The project calls for Tetco to build a 16-mile, 30-inch diameter extension from Tetco’s pipeline in Staten Island, NY, through Bayonne and Jersey City in New Jersey to a Consolidated Edison plant in Manhattan, as well as expand Spectra’s Algonquin Gas Transmission system (see NGI, Jan. 4). The proposed facilities would be capable of transporting up to 800 MMcf/d of Marcellus Shale gas to the region and are targeted for service in the fourth quarter of 2013.

The state of Alaska said it will employ laser profiling as part of a major aerial survey of proposed routes for potential pipelines that would carry North Slope gas supplies to in-state and/or Lower 48 markets.

With a potential equity and energy interest in both, Pacific Gas and Electric Co. (PG&E) views major interstate natural gas pipeline and electric transmission projects in the Pacific Northwest as treading water, awaiting other key market and regulatory developments, according to PG&E Corp. CEO Peter Darbee, speaking on a conference call with financial analysts last Wednesday. For now, the projects are in what Darbee called the San Francisco-based combination utility’s “far-end guidance period” (2012-13).

Alaska Gov. Frank Murkowski on Friday accused state lawmakers of “deliberately” trying to slow down plans to contract with North Slope producers BP plc, ExxonMobil Corp. and ConocoPhillips to build a natural gas pipeline and said unless there’s a turnaround in the next few days, the state may lose its chance to build a gasline. Murkowski also discounted reports that BP CEO John Browne wants to slow down negotiations. The governor said he had been “assured” of the producer’s commitment.

Exploration and production (E&P) companies take different routes in their drive to add value, and their road maps may follow mergers and acquisitions, organic growth, diversification or a simple focus on one region. However, what sets the winners apart is how well they execute their strategies and how quickly they evolve when times change, a John S. Herold equity analyst said Thursday.