A new pipeline may be needed in Southern California to eliminateimpending gas supply and infrastructure constraints, which couldbecome critical in the next few years, according to participants ata one-day roundtable last week in San Diego. Demand is expected tofar exceed supply in the burgeoning southern end of California andon both sides of the U.S.-Mexican border, where population,industrial and energy growth are surpassing expectations.
NGI The Weekly Gas Market Report
Articles from NGI The Weekly Gas Market Report
NWNG Unloads E&P to Focus on Distribution
Northwest Natural Gas announced the sale of its Canadian oil andgas exploration subsidiary, Canor Energy Ltd, for C$87.5 million incash to Celsius Energy Resources Ltd, a Canadian exploration andproduction company owned by Questar Corp.
El Paso Seeks Stay of Ruling on Enron Deal
Amid industry reports last week that Enron North American Corp.was actively trying to get out from under its conditionallyapproved large capacity contracts with El Paso Natural Gas, thepipeline sought a stay of the order. In the ruling, FERC deniedprimary rights at the prized Southern California Gas-Topock, AZ,delivery point for nearly half of the Enron affiliate’s firmtransportation capacity on El Paso.
Deliveries from Northwest Territories Begin in May
Deliveries are scheduled to start in May from Canada’s newestgas production frontier in the Northwest Territories after a groupled by Chevron Canada Resources Ltd. achieved a breakthrough inlining up approvals from a host of federal, territorial, native andenvironmental agencies.
El Paso Blames Curtailments on Scheduling Flexibility
El Paso Natural Gas openly concedes it has had to curtaildeliveries on the East End of its system between the San Juan Basinand Texas in recent months, but it said it wasn’t because it hasoversold capacity on that section of its system, as KN MarketingL.P. has alleged. Rather it’s been due to the schedulingflexibility El Paso affords shippers that allows them to use anyreceipt point on the system, up to the volume limit of theircontract.
Fuel Cells Bringing Gas-Fired Generation to Main Street
Year 2000 could be the year of the fuel cell on Wall Street asnext year is expected to see first commercialization of thetechnology on Main Street. While most consumers have yet to hear ofthe big gas-powered backyard batteries, investors certainly areaware.
CPUC Chief Sees Gas Restructuring as Sinking Ship
California’s top energy regulator thinks the momentum forrestructuring the state’s natural gas industry has lost most of itssteam. Responding to questions during a break at a statewide energyroundtable in San Diego last Tuesday, Richard Bilas, president ofthe California Public Utilities Commission, said he is unsure whenthe regulators will be able to make recommendations to the statelegislature for further gas unbundling.
CNG Conducting Unauthorized Storage Activity, FERC Says
FERC last week found that CNG Transmission Corp. has beenconstructing, converting and interconnecting gas storage wells atits Tioga complex in Pennsylvania without prior Commissionauthorization.
CA Lawmaker Says Generation Buyers Paid Too Much
In a surprising bit of candor, the chief political architect ofCalifornia’s 1996 electric industry restructuring law last weekrevealed that out-of-state energy companies paying high prices forgeneration assets, exceeded state lawmakers goals of gettingconsumers out from under the enormous stranded costs of the state’sthree major investor-owned utilities.
Natural Can Declare Shippers Liable for Damages
After giving Natural Gas Pipeline Co. of America (NGPL) asecond bite at the apple, FERC last week said the pipeline hadsufficiently defended a proposed tariff revision that would allowit to hold its shippers liable for damages resulting fromlower-quality gas entering its system.