LNG

Williams Companies, a leading US natural gas pipelines operator with projects aimed at boosting feed-gas supplies for Gulf Coast LNG export plants, successfully closed two strategic transactions that now position the company as the third-largest gatherer in the Denver-Julesburg Basin.

Williams Companies, the US natural gas pipelines and assets operator, has agreed a $950 million deal to expand its East Texas presence in the Haynesville Shale and giving more access to Gulf Coast LNG markets.

The American Gas Association (AGA) has condemned the Federal Energy Regulatory Commission’s new permit process for US natural gas pipelines, saying FERC’s policy change opens the way for emissions criteria to take precedence over the energy needs of ordinary Americans.

National Grid plc of the UK said annual operating profits from the Isle of Grain LNG import terminal in Kent, the largest in Europe, rose by 5 percent with only 30 percent capacity utilization, while its large investments in US operations were offset by regulatory setbacks.

The New York State Department of Environmental Conservation and the New Jersey Department of Environmental Protection have rejected the Northeast Supply Enhancement project of pipeline company Williams, one of whose customers would be UK LNG importer terminal owner National Grid.

The official Inventory of US Greenhouse Gas Emissions has been released showing that annual emissions from the natural gas distribution pipeline system for utilities and latterly to supply LNG export plants had dropped 73 percent in the past 18 years.

The US Environmental Protection Agency (EPA) figures for emissions from 1990 to 2018 illustrated the sizeable decline even as natural gas utilities added more than 760,000 miles of pipelines to serve 20 million more customers.

The report noted that distribution systems owned and operated by local natural gas utilities emit only 0.08 percent of produced natural gas.

“The greenhouse-gas emissions from the natural gas distribution system are low and getting lower and we remain committed to further reductions,” said American gas Association President and Chief Executive Karen Harbert.

“As companies continue to modernize our natural gas infrastructure and connect homes and businesses to the system, new opportunities arise to continue to drive down greenhouse gas emissions by leveraging new and existing natural gas infrastructure,” added Harbert.

For more than two decades, the EPA has developed and published estimates of greenhouse-gas emissions in its Inventory of US Greenhouse Gas Emissions and Sinks.

The EPA Inventory represents the most comprehensive assessment of US greenhouse-gas emissions available.

The EPA made further updates to its Inventory released in April 2020.

“The analysis characterized new estimates for methane emissions and the implications for the greenhouse gas profile for natural gas,” said the AGA.

“The Inventory affirms a low methane emissions profile for natural gas distribution systems shaped by a declining trend,” said the industry body.

“Industry-wide natural gas emissions as a rate of production is now 1.0 percent - a level well below even the most stringent thresholds for immediate climate benefits achieved through coal-to-natural gas switching,” stated the AGA.

The AGA said it remained committed to reducing greenhouse-gas emissions through innovation, new and modernized infrastructure, and advanced technologies that maintain reliable, resilient and affordable energy service choices for consumers.

Nov 25 (LNGJ) - National Grid, the UK network operator and owner of the Isle of Grain LNG import terminal in Kent, has received a boost for its US natural gas business by reaching an agreement with the State of New York to immediately lift a moratorium on connecting downstate customers.

   “This agreement also provides the necessary framework for resolving the longer-term energy supply issues,” said the UK company. “Within three months, National Grid has committed to present options to meet New York's long-term gas supply needs,” it added in reference to the possible construction of a new pipeline backed by National Grid.

   The Northeast Supply Enhancement project of Williams Company would transport about 400 million cubic feet per day of gas from Pennsylvania to New York, enough to supply about 2.3 million homes.

Williams, the owner of the largest US natural gas pipeline that underpins LNG feed-gas deliveries on the Gulf Coast and domestic supplies in the northeast, has signed an agreement with the largest Canadian pension fund for a US$3.8 billion joint venture in the prolific Marcellus and Utica Shale Basins in Pennsylvania and Ohio.

Williams and the Canada Pension Plan Investment Board have entered into a definitive agreement to establish the joint venture that will include Williams’ 100 percent-owned Ohio Valley Midstream system and 100 percent of Utica East Ohio Midstream system. Both are natural gas and gas liquids gathering and storage systems.

The Canadian pension fund will invest around US$1.34 billion for a 35 percent ownership stake in the joint venture company, while Williams will retain 65 percent ownership and will operate the combined business.

The fund has 20 million Canadian contributors and beneficiaries and at the start of 2019 had C$368.5 billion (US$276Bln) under management.

Analysts said that the fund was a surprise investor in US shale given the high proportion of Canadians who oppose hydrocarbon energy projects, even when thousands of jobs are on offer.

Williams, based in Tulsa, Oklahoma, owns the Transcontinental Gas Pipe Line (Transco) interstate system which in the past winter season delivered record amounts of natural gas to US distribution companies, power generators and LNG exporters because of the successful expansion in interconnections in recent years.

The Transco system extends almost 1,800 miles from South Texas to New York City and is part of the Williams network of 30,000 miles of interstate pipelines and natural gas storage facilities.

The abundant US natural gas supplies are being delivered into domestic markets when required as well as to liquefaction and LNG export plants. The LNG plants are set to double in number from three operational facilities to six by the end of 2019.

In addition to signing its joint venture with the Canadian fund, Williams also purchased the remaining 38 percent stake it did not already own in the Utica East Ohio (UEO) Midstream system from US company Momentum Midstream.

UEO is involved primarily in the processing and fractionation of natural gas and natural gas liquids in the Utica Shale play in eastern Ohio.

“Acquiring the remaining interest in UEO and forming a partnership with CPPIB continues to advance our already strong position in the Northeast,” said Alan Armstrong, President and Chief Executive of Williams.

“These transactions create a platform for continued optimization and growth, provide deleveraging, reduce capital spending on processing and fractionation capacity and unlock further synergies through combined operatorship of the systems,” he added.

Avik Dey, a managing director and head of energy and resource investments at the pension fund, said he was delighted to invest in the projects with Williams.

“The joint venture would provide additional exposure to the attractive North American natural gas market, aligning with our growing focus on energy transition,” said Dey.

US pipeline company Williams said its Transcontinental Gas Pipe Line (Transco) interstate system delivered a record amount of natural gas in January to distribution companies, power generators and LNG exporters because of successful expansions and the trend will continue in 2019 and 2020.

Transco delivered a record 15.68 million dekatherms (MMdt) on January 21 and the new peak-day mark surpassed the previous high that was set on January 5 last year.

In addition to being a major supplier to the growing LNG export industry, Transco provides natural gas to markets in 12 Southeast and Atlantic Seaboard states, including America’s biggest metropolitan areas.

The pipeline system, extending almost 1,800 miles from South Texas to New York City, also established a new three-day market area delivery record, averaging 15.30 MMdt from January 30 to February 1, 2019.

Williams, based in Tulsa, Oklahoma, said the natural gas delivery records were the result of additional firm transportation capacity created by multiple fully-contracted Transco expansions completed in 2018 and early 2019.

The abundant US natural gas supplies are being delivered into domestic markets when required as well as to liquefaction and LNG export plants. The LNG plants are set to double in number from three operational facilities to six by the end of 2019.

Williams said its pipeline expansions included the Gulf Connector, Atlantic Sunrise and the Garden State Phase II projects.

The company said that together, these expansions added more than 2.3 MMdt of firm transportation capacity to the existing pipeline system.

Construction is expected to commence on five additional Transco projects in 2019.

These are for the Rivervale South to Market system, Hillabee Phase 2, the Northeast Supply Enhancement and the Gateway and Southeastern Trail projects, collectively creating approximately 1.15 MMdt of additional pipeline capacity in 2019 and 2020.

“The recent frigid conditions across the country are an important reminder of the vital role transmission pipelines play in delivering the natural gas necessary to keep millions of Americans safe and secure, especially during winter periods of peak demand,” said Alan Armstrong, President and Chief Executive of Williams.

“The incremental capacity from the fully-contracted Transco expansion projects placed into service in 2018 and early 2019 reflects an increase of about 16 percent in Transco’s design capacity,” he added.

“This has helped position us to meet the growing demand needs of our customers,” stated Armstrong.

Williams, the US pipeline and infrastructure company, said its Gulf Connector project has been placed into full service to expand its Transcontinental Gas Pipe Line (Transco), the nation’s largest interstate natural gas pipeline, with more liquefied natural gas ventures.