FERC authorises Pine Needle LNG project

Dec 18, 1996 01:00 AM

Dec. 6, 1996 The Federal Energy Regulatory Commission (FERC) has issued a final order authorising development of Pine Needle LNG Company's proposed LNG peak demand facility in North Carolina. Located in Guilford County, N.C., the LNG facility will have a storage capacity of 4 bncf and vaporisation capability of 400 mmcfpd. Construction is scheduled to begin first quarter 1997, with a proposed in-service date of May 1, 1999. The $107 million facility will provide peak demand and storage service to customers on the Transcontinental Gas Pipe Line Corporation (Transco) pipeline system. Members of Pine Needle include affiliates of Transco, Piedmont Natural Gas, Public Service Company of North Carolina, North Carolina Natural Gas Corporation, Amerada Hess Corporation, and Municipal Gas Authority of Georgia. The Pine Needle facility will be operated by Pine Needle Operating Company, a wholly owned subsidiary of Transco.Alaska for new oil & gas developments Nov. 27, 1996 New oil development in a vast, federally owned reserve west of Prudhoe Bay and a new pipeline to transport the North Slope's 26 tcf of natural gas could fuel the next Alaska boom. The state, Inupiat Eskimos of the North Slope and oil companies are eyeing new oil opportunities in the 23 mm acre National Petroleum Reserve-Alaska (NPRA), a flat federal property that stretches west of Prudhoe Bay to the Chukchi Sea.The petroleum reserve, established by President Warren Harding in 1923, has been explored in the past, but oil and gas discoveries there were seen as too small to justify commercial development. The most active exploration occurred in the 1940s and 1950s, but some federal leases were sold as recently as the 1980s. Now many oil experts say modern exploration techniques could help detect commercial quantities of oil in NRPA.Interest was sharpened by the recent discovery of the a major oil deposit in the Colville River delta on the eastern edge of the reserve. The Alpine field, discovered by Arco, Anadarko and Union Texas Petroleum, holds 250 - 300 mmb of recoverable oil. While the Clinton administration vehemently objects to oil development in the Arctic National Wildlife Refuge (ANWR) east of Prudhoe Bay, it is considering new oil development in NPRA, either through a leasing program or a land trade. For now, North Slope gas is used primarily as an aid in recovering additional oil from the maturing fields. It is reinjected into the ground to increase reservoir pressure. The future market for North Slope gas sales is seen as Japan, Korea, Taiwan and possibly other Asian countries.

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