Houston’s Midcoast Energy Resources Inc., a pipeline powerhousein the southeastern United States, tightened its grip in Alabamaafter reaching an agreement yesterday with Calpine Corp. to provideup to 276 MMcf/d in natural gas transportation services to twofacilities in Alabama.
Supply
Articles from Supply
EPSA Blasts NYSEG Rates for NY Power Market
The Electric Power Supply Association (EPSA), which representsindependent power producers, told FERC yesterday that proposedattempts to temporarily halt market-based pricing in New York’spower market this summer — through administrative rates, pricescreens or price caps — should be rejected.
People Shortage Could Fuel Natural Gas Shortage
Calling a natural gas supply shortage in the coming year “a veryreal possibility,” Dr. Bruce M. Bell, chairman of the Mid-ContinentOil & Gas Association of Oklahoma, said there is an “urgentneed” for increased drilling activity, particularly in Oklahoma.But to increase the drilling activity you need more people, andthat shortage is directly related to the natural gas shortage. Sortof like a Catch 22.
Preliminary Survey Shows 1Q Production Decline
One look at Nymex natural gas futures prices will tell yousupply is a little scarcer than consumers probably would like, andfirst quarter financial reports are confirming that production isdown from last year. Producer earnings soared during the firstquarter as a result of higher oil and gas prices, and lowerdomestic gas production should take some of the blame for the bullmarket.
Florida Court Decision Jeopardizes Merchant Power, New Pipes
The Florida Supreme Court dealt a serious blow to thedevelopment of merchant power in the state and proposed new gassupply lines in a 6-1 decision issued last Thursday, reversing thestate Public Service Commission’s authorization for Duke Energy’sconstruction of a $160 million, 514 MW power plant at New SmyrnaBeach. (See NGI, Aug. 24, 1998)
Industry Briefs
Although the tight supply/demand situation for gasoline took thespotlight in the Energy Information Administration’s Short-TermEnergy Outlook last week, the EIA was pretty bullish on natural gasas well. The administration has gas demand rising 3.5% this year to22.17 Tcf and 4.1% next year to 23.08 Tcf. It projects a major 22%wellhead price hike this year to an average of $2.56/MMBtu followedby a much smaller rise in 2001 to $2.61. EIA sees dry domestic gasproduction inching up about 1% this year and only about 0.2% in2001. Imports are seen rising 8.3% this year to 3.67 Tcf and 2.7%next year to 3.77 Tcf.
Alberta Regulators Order Producers to Shut in 146 Wells
The founding cornerstone of regulation in Canada’s chief energysupply province has turned out to be alive and well — andoperating at the expense of natural gas producers.
People
Dennis J. Seeley has been named president of National Fuel GasSupply Corp., the gas pipeline and storage arm of National FuelGas. Co. He previously served as senior vice president and directorof National Fuel Gas Distribution.
Gas Associations Laud Ruling on EPA’s NOx Regulations
Lauded by both the Interstate Gas Association of America (INGAA)and the Natural Gas Supply Association (NGSA) as a boost for thegas industry, the Environmental Protection Agency’s program forreducing nitrogen oxide (NOx) emissions for 19 eastern andmidwestern states plus the District of Columbia was upheld by theDistrict of Columbia Circuit Court of Appeals recently. Barring anyfurther appeals, the NOx SIP Call rule will be added to the CleanAir Act, requiring the states included in it to reduce their NOxemissions by a total of 1.2 million tons, or 28% from currentlevels, annually. The court’s decision was passed March 3.
Canada Gas Building Toward Alaska
The growth in Canada’s natural gas supply is moving northwardand at some point is expected to be “within reach” of Alaska, wherethe United States has “huge reserves” of gas. If this trendcontinues, the still-under-construction Alliance Pipelineconceivably one day could be transporting both Canadian and Alaskangas supplies, an executive with the pipeline said.