With production out of the nation’s shale plays holding down natural gas prices and electricity generation becoming ever more dependent on inexpensive gas, coordination between the two markets will continue to be a top priority and a series of other issues need to be resolved, according to panelists at the Energy Bar Association (EBA) Mid-Year conference in Washington, DC, Friday.
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The Federal Energy Regulatory Commission has approved Transcontinental Gas Pipe Line’s (Transco) Northeast Supply Link project to provide additional firm transportation service from the Marcellus Shale. The project would provide 250,000 Dth/d of incremental firm transportation capacity from supply interconnections on Transco’s Leidy Line in Pennsylvania to its 210 Market Pool in New Jersey and the Manhattan, Central Manhattan and Narrows delivery points in New York City. Thirteen miles of additional 42-inch diameter pipe segments, called loops, are to be built in Pennsylvania and New Jersey, along with more compression and modifications. The project, which received a favorable environmental assessment in August, is slated to be completed and in operation by November 2013 (see NGI, March 8, 2010). In addition to the loop segments, the Williams’ pipeline plans to install a 25,000 hp electric motor-driven compressor station and substation in Essex County, NJ, (Station 303); and install a 16,000 hp natural gas turbine-driven compressor unit at its existing Compressor Station No. 515 in Luzerne County, PA. Four shippers have subscribed for all of the capacity including affiliate Williams Gas Marketing Inc. (135,000 Dth/d); Anadarko Energy Services Co. (67,500 Dth/d); MMGS Inc. (32,500 Dth/d and Hess Corp. (15,000 Dth/d).
NGVs Make Small Gains in Texas, Pennsylvania
Texas and Pennsylvania stakeholders are revving up their natural gas vehicle (NGV) engines but policies and infrastructure continue to be out of sight.
Newfield: No Dry Gas Drilling, More Hedging
These days with no end to decade-low gas prices in sight, Newfield Exploration Co. CEO Lee Boothby can’t wait to be in charge of an oil-weighted production company, and it’s going to happen soon, he said Wednesday. Newfield has put down the dry gas drillbit and is focusing intently on oil and liquids-rich plays.
Outlook for Gas Prices Bearish For Year, Likely Longer
Moody’s Investors Service on Thursday sliced its North American natural gas price assumptions through 2013 and said with “no relief in sight for overproduction and storage,” it now assumes that gas delivered at the Henry Hub this year will sell for an average of $2.75/MMBtu.
Moody’s Cuts 2012 Henry Hub Price to $2.75/MMBtu
Moody’s Investors Service on Thursday sliced its North American natural gas price assumptions through 2013 and said with “no relief in sight for overproduction and storage,” it now assumes that gas delivered at the Henry Hub this year will sell for an average of $2.75/MMBtu.
Despite Earnings Hit, Dominion Focused on Development
A 30% decline in quarterly profits was within Dominion’s expectations and growth opportunities are within sight, according to the Richmond, VA-based company, which affirmed its 2010 operating earnings guidance range of $3.20-3.40/share.
Prices Continue Steep Slide; No Rally in Sight
With Hurricane Dean continuing to recede as a potential threat to U.S. offshore production, cooling load remaining sparse outside the South and Southwest and a near-dollar plunge by September futures the day before serving as highly negative guidance, the cash market continued to fall by mostly large amounts at all points Tuesday.
CERA Predicts Further Rise in Producer Costs
The costs of major oil and gas production projects have risen more than 53% in the past two years, and no significant slowing is in sight, according to a benchmark index developed by IHS and Cambridge Energy Research Associates (CERA), which was announced last week.
Analysis Predicts Further Producer Capital Cost Increase in 2007
The costs of major oil and gas production projects have risen more than 53% in the past two years, and no significant slowing is in sight, according to a new benchmark index developed by IHS and Cambridge Energy Research Associates (CERA).