Infrastructure

While big Asian liquefied natural gas (LNG) export projects stall on the Pacific and Atlantic coasts, a distinctive national pattern of remote industries and settlements is enabling an inland start on Canadian LNG supply and distribution development.

After completing a feasibility assessment, Talen Energy Corp.’s board of directors has approved a $70 million project to modify the company’s Montour power plant in Central Pennsylvania to co-fire natural gas.

The Alaska Gasline Development Corp.(AGDC) has appointed Keith M. Meyerpresident following a five-month search to replace Dan Fauske, who resigned. Meyer has more than 35 years of industry experience, including 15 years focused on liquefied natural gas (LNG) initiatives. He has managed the development of large-scale infrastructure projects spanning four continents to include LNG terminals, natural gas pipelines, power plants, gas liquids plants, storage, and gas separation projects. He joins AGDC from LNG America, an energy logistics company he founded in 2008 to provide end-to-end LNG distribution solutions to increase the use of LNG as a fuel source within the marine, transportation and other high-horsepower industries. Meyer was previously president of Cheniere LNGwhere he oversaw the development of the Sabine Pass receiving terminal in Louisiana. He has also worked for CMS Energy Inc.and ANR Pipeline Co.Meyer takes the helm of AGDC following the state of Alaska’s $65 million acquisition of TransCanada Corp.’s interest in the Alaska LNGproject (see Daily GPI,Nov. 5, 2015). AGDC holds the state’s 25% interest in the 20 million tonne per annum LNG export project, which is completing a $400 million preliminary front-end engineering design phase this year.

The U.S. Federal Trade Commission (FTC) on Thursday cleared Energy Transfer Equity LP’s (ETE) proposed acquisition of The Williams Companies Inc. (WMB) and specified assets to be divested.

A Maine Public Utilities Commission (PUC) staff recommendation in an Examiner’s Report released Wednesday says there is no need for state regulators to enter into pipeline capacity contracts in order to support natural gas and power price stability — at least not for now.

Japan’s Toho Gas Co. Ltd. struck a sale and purchase agreement with Mitsubishi Corp. unit Diamond Gas International Pte. Ltd. for liquefied natural gas (LNG) from Sempra Energy’s Cameron LNG LLC export terminal in Hackberry, LA. The agreement is for about 200,000 tons per annum at three cargos per year for 19 years beginning in 2019. The price is indexed to U.S. natural gas prices. Toho did not disclose what U.S. index was used. Cargos are to be delivered ex-ship, with the seller arranging transport. However, Toho said destination flexibility is allowed for by prior agreement between the parties. “We…strive for LNG procurement diversification, including diversification of the price-index, supply sources and types of contracts to ensure a stable energy supply to customers at a competitive price,” Toho said.

Sempra Energy and its Los Angeles-based Southern California Gas Co. (SoCalGas) utility have said in a regulatory filing that the full costs of the Aliso Canyon natural gas storage well leak are still unknown but could be significant.

Shell Chemical Appalachia LLC’s decision to build a multi-billion dollar ethane cracker in Western Pennsylvania marks the first time in more than 20 years that such a facility has been built in the United States outside of the Gulf Coast.

More than a month after a massive explosion in Southwest Pennsylvania knocked out service on a portion of Texas Eastern’s (Tetco) Penn-Jersey Line in the M3 Zone, three pipelines still remain shut-in, limiting flows east of the Delmont Compressor station.