NATURAL GAS
The Ohio Power Siting Board has approved South Field Energy’s proposal to construct a 1,105 MW natural gas-fired electric generation facility in Ohio’s Columbiana County. The project adds to the growing list of natural-gas fired power plants taking over the market share of coal-fired generation that is retiring due to tighter environmental regulations and higher costs.
After a court ruling forbidding the Massachusetts Department of Public Utilities to approve contracts requiring electric customers to pay for new gas pipelines, electric utilities have withdrawn their petitions to acquire capacity on the Access Northeast. The ruling deals a setback to New England state plans examining ways to advance regional pipeline projects through capacity contracts with electric distribution companies.
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After a court ruling forbidding the Massachusetts Department of Public Utilities to approve contracts requiring electric customers to pay for new gas pipelines, electric utilities have withdrawn their petitions to acquire capacity on the Access Northeast. The ruling deals a setback to New England state plans examining ways to advance regional pipeline projects through capacity contracts with electric distribution companies.
On May 2, 2016, the Federal Energy Regulatory Commission (FERC) issued a favorable environmental assessment for the Atlantic Bridge natural gas pipeline project that would supply New England states and the Maritime provinces of Canada. The project would provide additional firm pipeline capacity required to meet Northeast market growth and has preexisting agreements to account for its entire capacity. FERC has convened a technical conference to consider wholesale market rules that encourage firm capacity contracts to facilitate pipeline expansions and projects. Electric market design changes providing ways to recover the cost of firm pipeline capacity – where needed for electric reliability – would support existing and incentivize additional pipeline infrastructure necessary to alleviate constraints.
On April 5, 2016, California energy agencies released an action plan identifying measures to preserve gas and electric reliability in the greater Los Angeles area following a major leak at the Aliso Canyon underground natural gas storage facility. The plan is expected to reduce the possibility of electric interruptions, although it will not completely eliminate the risk. The incident, which has triggered regulatory efforts at state and federal levels, could bolster the Administration’s plans to curb methane emissions and further regulate underground storage.
On March 17, 2016, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposed revisions to safety standards for onshore natural gas transmission and gathering pipelines. The revisions could impose significant regulatory requirements for additional miles of natural gas pipelines, including pre-1970 pipelines previously exempt from PHMSA regulations, and are estimated to cost industry between $39.8 and $47.4 million a year. Regulatory requirements for automatic shut-off valves and underground storage have been postponed for future rulemaking.
Key Takeaways: The California Department of Conservation (DOC) will issue emergency natural gas storage regulations in response to a persistent leak at the Aliso Canyon Natural Gas Storage Facility in Los Angeles County This incident exposes underground storage risks and regulatory disparity as utilities continue to increase natural gas-fired generation Innovative methane detection technology will…...
Key Takeaways: Florida’s investor-owned utilities will continue to employ current natural gas hedging practices, which have resulted in approximately $6B opportunity costs Evolving supply-demand dynamics of the natural gas market spur utility commissioners to reconsider hedging policy Ongoing state efforts to enhance hedging mechanisms reflect the need for long-term supply contract structures Insight for…...
Key Takeaways: Natural gas pipeline expansions will deliver new incremental production from the Marcellus and Utica regions to emerging markets in the Midwest, Southeast and Gulf Coast Cross-border pipelines are increasing natural gas exports to Canada and Mexico Bidirectional pipeline projects will optimize potential excess supply in the Northeast during spring and fall Impending liquefied…...
Key Takeaways: The Energy Policy Modernization Act of 2015 contains comprehensive reforms with impacts to gas, electric, and renewables, and it is likely to pass after the August recess The bill would require the Department of Energy (DOE) to issue final decisions on applications to export natural gas to countries that do not have a…...
During the 2000s, many companies positioned themselves for a prolonged period of U.S. natural gas import dependence and constructed multi-billion dollar liquefied natural gas (LNG) import terminals across the Gulf Coast. However, the shale revolution transformed the domestic energy landscape, with natural gas production increasing from 19 trillion cubic feet (tcf) in 2005 to 27…...
Insight for Industry – Energy Efficiency Improvement Act Will Reduce Energy Demand The Energy Efficiency Improvement Act of 2015, which President Obama signed into law on April 30, will add momentum to falling energy consumption per capita in the United States by reducing energy demand from commercial buildings, manufacturing plants, and homes. The relatively uncontroversial…...
