TransCanada to build $500 million natural gas pipeline extension in Mexico

CALGARY, Alta. - TransCanada Corp. on Feb. 27 announced that it will build, own and operate the Tamazunchale Pipeline Extension in Mexico.

Construction of the natural gas pipeline is supported by the award of a 25-year natural gas transportation service contract by the Comision Federal de Electricidad (CFE), Mexico's state-owned power company.

TransCanada expects to invest approximately US$500 million in the pipeline and anticipates an in-service date in the first quarter of 2014. The project will be 146 miles long and have contracted capacity of 630 million cubic feet a day (MMCf/d). The pipeline will use a combination of 30- and 36-inch-diameter pipe and have 37 megawatts of installed compression.

The pipeline will originate at the terminus of TransCanada's existing Tamazunchale Pipeline in the state of San Luis Potosi and extend through the states of Hidalgo and Queretaro, where it will connect with Mexico's National Pipeline System and serve a CFE combined-cycle power generating facility near El Sauz, Queretaro.

"The Tamazunchale Pipeline Extension demonstrates our continued commitment to developing Mexico's energy infrastructure to meet growing requirements for increased natural gas supply," said Russ Girling, TransCanada's president and chief executive officer.

Transco proposes 258-mile Atlantic Access gas pipeline for Marcellus Shale

JOHNSTOWN, Pa. - Transcontinental Gas Pipe Line Co. is maneuvering to construct a pipeline to carry Marcellus Shale natural gas across Pennsylvania to West Virginia.

The Atlantic Access Project, a proposed 258-mile pipeline using 36-inch pipe, would move fuel from the rich Marcellus gas fields of western Pennsylvania and the panhandle of West Virginia to eastern gas-hungry markets.

"We are early - early in this process," said Christopher Stockton, a spokesman for Houston-based Transco. Transco is owned by The Williams Co. Inc. of Tulsa, Okla.

The company has filed a pre-application, amounting to a request for a review of project plans, with the Federal Energy Regulatory Commission.

The project could cost $1 billion, according to U.S. Rep. Bill Shuster, chairman of the House Subcommittee on Railroads, Pipelines and Hazardous Materials.

When the pipeline is completed, it would carry 1,350,000 dekatherms of natural gas per day, or enough energy to provide winter heat for 1,350,000 homes for one day, according to calculations by Penn State's Marcellus Center for Outreach and Research.

TAPI gas project hits snags as buyers seek uniform price

ISLAMABAD - The much-delayed Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project has hit new snags as buyer countries Pakistan, Afghanistan and India sought uniform price of gas while Turkmenistan wants a bilateral arrangement (separate prices) for every buyer country, senior officials at the Ministry of Petroleum and Natural Resources told The International News.

Under the proposed project, the 1,640-km. TAPI gas pipeline backed by the Asian Development Bank will bring 3.2 billion cubic feet of natural gas per day (bcfd) from Turkmenistan’s gas fields to Multan in Central Pakistan and end in the northwestern Indian town of Fazilka. Out of this, Pakistan will get 1.365 billion cubic feet of gas per day, India 1.365 bfcd and Afghanistan 0.5 bfcgd.

Sources say the Manila-based ADB is willing to sponsor Pakistan's equity in the TAPI project. The official said Pakistan, which is virtually a cash-starved country, needs a huge injection of gas to meet its growing energy needs and to this effect the ADB's offer to sponsor the major chunk of Pakistan's equity in the project will provide massive ease to the country. Sources privy to the Manila talks said stalemate plagued talks in Manila from May 30 to June 3 between the seller and buyer countries when Afghanistan, Pakistan and India united on the stance that a separate tariff would have huge political repercussions in each buyer country.

Sources said buyer countries also raised the issue of which countries would pay the price of lane-packed gas (gas which remains in the pipeline). Turkmenistan is of the view that buyer countries always pay for lane-packed gas but buyer countries want the seller to share the price of the lane-packed gas. "Buyer countries argue that since they will have take off of gas from their respective border points, why should they pay for gas which remains in the pipeline," said a source.

When asked when the Gas Sales Purchase Agreement (GSPA) would be signed by seller and buyer countries, sources said it would be finalized by July 31, 2011.

During the Manila talks, India brought up the issue of sulphur content in the gas saying India had comprehensive legislation in this regard and wants minimum sulphur content in the gas imported from Turkmenistan. Sources said Afghanistan and Pakistan also sided with India on the issue and Islamabad demanded that sulphur content be no more than 0.25 percent. On this issue Turkmenistan said it would have to build a de-sulphurisation plant, which would increase prices for all buyer countries.

"During the talks many technical issues got resolved, but 15 to 16 issues are still to be resolved," official sources told The International News. "All stakeholder countries have decided that the project will be completed not in the segmented approach adopted in the case of the Iran-Pakistan gas pipeline but using the integrated approach."

Michigan utility admits homes built over natural gas transmission line

BAY COUNTY, Mich. - A retired Consumers Energy worker who says he's been trying to get the utility company to do something about a high-pressure gas pipeline running under a local home for years is finally getting answers.

Since WNEM-TV5 first aired an investigative report on Nov. 8, the station has had dozens of calls to the newsroom from people wanting to know where the pipeline s located.

The former employee spoke out because he says people need to know a high-pressure line runs under one Bay County home and very near others.

On Nov. 12, a spokesperson for Consumers Energy acknowledged that a home was built over the natural gas pipeline, but claims there is no immediate hazard or emergency.

Consumers Energy told TV5: “The location referenced during your newscast represents an unusual situation where the homeowner built a structure over our natural gas pipeline. Consumers Energy does not allow structures to be built immediately above its pipelines due to potential safety and access issues. This situation presents no immediate hazard or emergency. However, we will be examining the situation more closely in the near future to determine the appropriate remedial action. Consumers Energy places a high priority on its comprehensive, continuous pipeline inspection and remediation program.”

Jersey City aims to stymie proposed Spectra pipeline with ordinance

JERSEY CITY, N.J. - Jersey City's City Council is set to introduce ten ordinances amending the city code to specifically prohibit natural gas pipelines in certain redevelopment zones.
"Natural gas pipelines are an unwanted use in the area," each modification reads.
The ordinances are a response to the proposal by Houston-based Spectra Energy to expand a high-volume wholesale natural gas pipeline from Staten Island 16 miles through Bayonne and Jersey City.
The proposed pipeline would roughly follow the path of the Turnpike Extension through Jersey City before turning east near 18th Street to run under the Hudson River to a Con Edison plant on Manhattan's West Side.
The ordinances would amend current laws to prohibit natural gas pipelines in 10 redevelopment zones along the proposed route.
The ordinances also include small changes to procedures for reviewing building plans in the zones.

Jersey City aims to stymie proposed Spectra pipeline with ordinance

JERSEY CITY, N.J. - Jersey City's City Council is set to introduce ten ordinances amending the city code to specifically prohibit natural gas pipelines in certain redevelopment zones.
"Natural gas pipelines are an unwanted use in the area," each modification reads.
The ordinances are a response to the proposal by Houston-based Spectra Energy to expand a high-volume wholesale natural gas pipeline from Staten Island 16 miles through Bayonne and Jersey City.
The proposed pipeline would roughly follow the path of the Turnpike Extension through Jersey City before turning east near 18th Street to run under the Hudson River to a Con Edison plant on Manhattan's West Side.
The ordinances would amend current laws to prohibit natural gas pipelines in 10 redevelopment zones along the proposed route.
The ordinances also include small changes to procedures for reviewing building plans in the zones.
The council has already passed a resolution stating its official opposition to the Spectra proposal, and the city administration is strongly opposed to the plan.
Under federal law, the Federal Energy Regulatory Commission (FERC) is granted sole authority to approve or deny permits for interstate natural gas transportation infrastructure. If FERC grants Spectra a permit to build the pipeline, under the Natural Gas Act of 1978 the commission is entitled to invoke eminent domain against property owners unwilling to yield property to the pipeline's right-of-way, likely trumping actions like hose being taken by the City Council.
But city officials say that by formally stating that the pipeline is contrary to the city's redevelopment agenda, the ordinances would create a record of opposition to the pipeline by the council and planning officials that could benefit future litigation.