Under pressure at FERC for buying such a large chunk (40%) ofthe firm transportation capacity to California on El Paso NaturalGas, NGC Corp. announced late yesterday it is releasing 593,122MMBtu/d, or about 40% of the capacity it holds on the pipeline fora one-month term. It is the first quantity of transportationcapacity NGC has released since its negotiated contract with ElPaso became effective Jan. 1 and may appear to be a response toprotesters who have accused the marketing firm of withholdingwestbound capacity in order to prop up capacity prices. “It’spressure from the hearings at FERC last month,” said one observer.A spokeswoman had no comment on why the firm was releasing thecapacity. Demand remains strong in California despite the start ofa shoulder month. “Our goal is not to corner the market but ratherto use what we can,” one NGC marketer said cryptically.
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Coastal’s ANR Pipeline is seeking FERC approval to implement twonew interruptible services and expand service options availableunder its firm storage service tariff. The proposed new servicesare called interruptible parking and lending service, andinterruptible wheeling service. “We are offering these new servicesin response to requests by our customers, who have indicated a needfor more product choices and flexibility due to the dynamic natureof today’s natural gas marketplace,” said Jeffrey A. Connelly, ANRCEO. “The revisions we are proposing to our firm storage servicewill provide ANR’s shippers with an array of additional serviceflexibility in managing their supply portfolios.”
Natural Gas Clearinghouse’s (NGC) controversial transportationcontracts for 1.3 Bcf/d with El Paso Natural Gas came under fireagain last week as producers and marketers hammered away at thealleged anticompetitive nature of the firm agreements.
TransEnergy Management and SABRE Energy Network will interfacetheir respective software products. Under the agreement, users willhave the ability to submit pipeline nominations and to receiveconfirmations through TransEnergy’s Energy Marketing Systemelectronically using SABRE Energy’s SEN*Net product. SEN*Net is astandardized alternative to the numerous pipeline electronicbulletin boards (EBBs) through which most nominations andconfirmations for gas transactions are now made.
The first bidweek under Pacific Gas & Electric’s Gas Accordtransportation framework was a rough ride for many doing businessin the drastically changed northern California market. WhilePG&E went ahead with its massive computer system upgrade onschedule, few shippers were prepared to handle it.