Business & Markets
Magellan Midstream, TransCanada to Build Houston Connection
Magellan Midstream Partners and TransCanada announced definitive plans to connect TransCanada’s Houston tank terminal to Magellan’s East Houston terminal. HoustonLink Pipeline, a new company owned 50-50 by Magellan and TransCanada, will construct, own and operate a 9-mile, 24-inch crude oil pipelin..
National Grid at Home and Abroad
National Grid is a British-based multinational pipeline and power networks company with operations in the United Kingdom and northeastern United States. It is one of the largest investor-owned energy companies in the world and is listed on both the New York and London Stock Exchanges. According to ..
Crude Oil Prices to Remain Relatively Low Through 2016, 2017
The Short-Term Energy Outlook (STEO) released on Jan. 12, which is the first STEO to include projections for 2017, forecasts Brent crude oil prices will average $40 per barrel in 2016 and $50/bbl in 2017. West Texas Intermediate (WTI) crude oil prices are expected to be $2/bbl lower than Brent in 20..
Financial Expert High on Mexico’s Potential
For an expert’s perspective on Mexico’s expansive Energy Reform effort, P&GJ interviewed Richard Ennis, managing director, ING Capital. P&GJ: Why did President Enrique Peña Nieto institute the Energy Reform program? Enrique Enni..
Company & Association News
The Board of Directors of the Texas Alliance of Energy Producers elected Robert W. Osborne vice chairman at its recent meeting in Fort Worth. Osborne, who has been in the oil and gas business since 1971, is vice president and 50% owner of Cobra Oil & Gas Corp. in Wichita Falls. Personnel Changes ..
State Severance Tax Revenues Decline as Fossil Fuel Prices Drop
Several states that collect significant revenue from fossil fuel extraction are re-evaluating current and upcoming operating budgets and taxation structures to address revenue shortfalls. Severance taxes are often imposed on the extraction of nonrenewable resources such as crude oil, natural gas, an..
Honeywell to Supply System for Texas-Based LNG Project
Texas LNG, a Houston-based energy company, has selected Honeywell’s UOP Amine Guard™ FS process to remove contaminants from natural gas in preparation for liquefaction and export. The company’s two-phase project, located on the north shore of the Port of Brownsville’s deep-water ship channel, will p..
Gazprom Rapidly Losing Grip on European Markets
When talking about energy security in Central and Eastern Europe (CEE), most governments think of gas pipelines. The bigger they are, the more secure they feel. In the past decade, at least 10 large-scale pipeline projects have been initiated and proclaimed as the ultimate source of gas diversification and energy security. However, just one has been actually realized – Nord Stream – and still Gazprom can fill its capacity only half-way making the project largely uneconomical.
Cheniere Energy Replacing CEO Souki
HOUSTON (AP) — Two months after activist investor Carl Icahn boosted his stake in Cheniere Energy for the second time in two weeks, the company announced the departure of its co-founder and chief executive. The company was the first to be granted permission by the U.S. to export gas and has built massive liquid natural gas export terminals to do so. Those exports are expected to begin any day now.
Deliveries to Sabine Indicate Train 1 Commissioning Well Underway
The first substantial deliveries of 46 MMcf to Sabine Pass LNG took place Dec. 10 from Creole Trail’s Creole Trail-SPLIQ-D meter location. This increase in deliveries came from a 33.6 MMcf receipt off of the TETCO pipeline. The point has an operational capacity of 1.7 Bcf. Nominations at this point were first seen Oct 1; since then it has averaged 2.74 MMcf/d. This correlated with consistent flaring activity seen by Genscape’s proprietary monitors.
2 Natural Gas Facilities Proposed for Louisiana 'Alternative Hub'
NEW ORLEANS (AP) — Two companies are looking at building large facilities along the Mississippi River south of New Orleans where they can export natural gas to the world market, another sign of the expanding footprint of the natural gas industry in Louisiana.
Algonquin Plans Pipeline Expansion of LNG Storage Facility
Algonquin Gas Transmission, LLC has filed a request with the Federal Energy Regulatory Commission (FERC) for a pre-file review process for the proposed Access Northeast Project. Upon completion of the review, Algonquin will file an application with FERC to start construction.
Hard Decisions for LNG Project Developers
The frustrations of an oversupplied LNG market and low prices were evident as about 100 LNG buyers, sellers, lenders, advisers and goods and services suppliers gathered in London earlier this fall. “How do you plan your business in an environment like that,” said David Ledesma, managing director of South-Court Ltd., a UK-based oil and gas consultancy. “How are you going to go out and make final investment decisions?”
NY Governor Rejects Proposed Gas Terminal Off Coast
LONG BEACH, N.Y. (AP) – Gov. Andrew Cuomo has rejected a proposal to build a liquefied natural gas terminal in the waters off New York and New Jersey, effectively killing the project amid an outcry from residents of some coastal communities that it could endanger the environment and be a target for terrorists.
Appalachian Midstream Operators Face Myriad of Challenges
This has been a busy year of new challenges and issues facing the Appalachian oil and gas industry as rig count in the Appalachian Basin and elsewhere is down substantially compared to the previous two years. A significant challenge ahead for shale developers in a lower price environment is to continue to be active in finding land, drilling wells and getting the natural resource to market. This article concerns our most recent report, published in May, on the issues and challenges facing midstream operators in the Appalachian Basin.
Latin America Forced to Face Growing Supply-Demand Gap
Latin America’s prominence on the world gas stage has increased over the last several years. Although it is well-endowed with natural gas resources, the region has struggled to find its footing as both a natural gas producer and consumer. Consequently, Latin America’s potential as a natural gas import province is the topic of increasingly animated debate.
Natural Gas Market Dynamics in the Northeast
Natural gas markets have gone topsy-turvy. Until recently, prices around the country were generally pretty similar, with gas costing a bit more in the Northeast, far from where it was produced on the Gulf of Mexico coast. But that reality has changed dramatically in the last few years.
With a Chill in the Air, Thoughts in New England Turn to Heating Bills
As winter approaches, the hot topic of conversation in the Northeast once again becomes the looming frigid temperatures and accompanying burdensome cost of heating homes and offices along with powering manufacturing plants. With this in mind, the Access Northeast project developers plan to upgrade existing pipeline facilities and market area storage assets in New England to deliver – on peak days – up to 1 Bcf/d of natural gas for electric-generation markets.
Iraqis Tour North Dakota to Study Gas-Capturing Technologies
BISMARCK, N.D. (AP) — The Iraqi government has turned to North Dakota for help in finding solutions to the wasteful burning of natural gas that's a byproduct of oil production. Iraq, OPEC's second-biggest oil producer behind Saudi Arabia, is having much the same problem dealing with excess natural gas that North Dakota has had as oil production there has increased, though the state has made strides recently to capture and use it, said Julio Friedmann, the U.S. Energy Department's deputy assistant secretary for fossil energy.
Fed Review Boosts Ocean Gas Plan; Foes Seek NY Governor's Veto
ATLANTIC CITY, N.J. (AP) — A company that wants to build an ocean terminal off the coast of New York and New Jersey to import LNG said Wednesday that a federal review supports its claim the $600 million project is safe and economically necessary. Roger Whelan, CEO of Liberty Natural Gas, told The Associated Press that the final environmental impact statement from the U.S. Coast Guard bolsters its contention that the project to import natural gas to the New York metropolitan region during peak demand times should go forward.
Can the Panama Canal Fulfill Its Global LNG Promise?
After delays, strikes, and cost overruns, the Panama Canal expansion is finally set to open in April 2016. But the global energy landscape has changed in the eight years since construction began, with opportunities first expanding and now, potentially, contracting. The question today is whether the new canal can still fulfill a promise to transform global LNG trade.
Tough Decisions Ahead for LNG Project Developers
<em>Editor's note: Larry Persily, assistant to the Kenai Peninsula Borough mayor in Alaska, was invited to participate in a global LNG conference and prepared this report as part of the borough’s ongoing efforts to share information about LNG market developments. </em> The frustrations of an oversupplied LNG market and low prices were evident as about 100 liquefied natural gas buyers, sellers, lenders, advisers and goods and services suppliers gathered in London last month.
In the News: Phillips 66, Spectra Energy Bail Out Troubled DCP Midstream
Phillips 66 and Spectra Energy, 50/50 joint venture owners in DCP Midstream, LLC, have entered into a nonbinding letter of intent for contributing assets to strengthen DCP Midstream. This transaction is expected to provide DCP Midstream with a stronger balance sheet and increased financial flexibility, and positions DCP to grow through commodity price cycles.
Alaskans Eager to Learn Amount of Upcoming Oil Payout
ANCHORAGE, Alaska (AP) — Oil prices are so low, they're hovering at benchmarks not seen in years, plunging oil-dependent Alaska into a crippling budget deficit. But the industry's woes won't affect the payout from the state's oil investment account to Alaskans even though state government has been scrambling to pay the bills. In fact, most predictions put the yearly oil check at near record levels, about $2,000 for nearly every man, woman and child who lives in the 49th state. Last year's check was $1,884.
EIA Finds U.S. Propane Inventories Reach All-Time High
U.S. inventories of propane and propylene reached 97.7 million barrels as of September 11, the highest level in the 22 years that EIA has collected weekly propane inventory statistics. In the first six months of 2015, U.S. propane and propylene inventories were 24.3 million barrels higher on average compared to the same period in 2014. In the past year, nearly all of the increase in inventories occurred in the Gulf Coast region (PADD3).
Pragmatic Approach to Understand Indian Natural Gas Market
A Pragmatic Approach to Understand Indian Natural Gas Market Historically, India has relied on coal to generate power, liquid fuels as feedstock and oil for its transport sector. But for environmental reasons India needs to focus on cleaner fuels. Natural gas has emerged as the fuel of choice for many industries in India owing to its environmental benefits and higher economic efficiency. However, India’s natural gas market is seeing a supply deficit due to its low domestic production.
Natural Gas Infrastructure Intelligence Report
In today’s commodity environment, being aware of ongoing decisions by producers and midstream players regarding planned projects is a critical component to understanding the future natural gas infrastructure landscape. Experienced analysts collect and interpret the information to deliver a streamlined approach for understanding and quantifying the influence of planned projects on the market. Up-to-date, reliable insight into these decisions reduces blind spots for traders so they can make more informed, longer-term decisions.
Southcross Begins Open Season on Propane Pipeline System
Southcross Energy Partners launched a binding open season to solicit commitments for its recently completed 20,000 bpd propane pipeline system connecting the company's Bonnie View Fractionator to the Corpus Christi. TX area for delivery to end-use customers.
In the News: Crude Oil Prices Poised to Drop Further
Since the oil price collapse, global oil production has risen, not fallen. Since the fateful Nov. 27, 2014 OPEC meeting, aggregate production from the U.S., Saudi Arabia, and Iraq is up 2 MMbop/d – far more than demand. November is also when the U.S. inadvertently became the swing oil producer. Prices have not yet fallen far enough or for long enough for an appreciable U.S. supply adjustment to occur. It may not be far off, especially if oil prices fall further with new Iranian supplies, says a study from IHS Energy that notes:
Steelhead LNG Plans Gas Connector Project on Vancouver Island
Steelhead LNG struck a pre-construction agreement with pipeline developer Williams to design and gain regulatory approvals for the Island Gas Connector Project, a proposed natural gas pipeline to Vancouver Island. The pipeline would transport natural gas 33 miles from Williams’ Northwest Pipeline’s interconnect with Spectra Energy’s BC Pipeline system at Sumas, WA to Cherry Point, WA. From there, it would travel 47 miles subsea, landing directly to the proposed Malahat LNG Project on the island.
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- ONEOK Agrees to Sell Interstate Gas Pipelines to DT Midstream for $1.2 Billion
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- Boardwalk Approves 110-Mile, 1.16 Bcf/d Mississippi Kosci Junction Pipeline Project
- Kinder Morgan Approves $1.4 Billion Mississippi Crossing Project to Boost Southeast Gas Supply
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Enbridge Should Rethink Old, Troubled Line 5 Pipeline, IEEFA Says
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- Polish Pipeline Operator Offers Firm Capacity to Transport Gas to Ukraine in 2025
