On Friday, Shares of Kinder Morgan, Inc. (NYSE:KMI), lost -0.05% to $38.96.
On June 15, Tennessee Gas Pipeline (TGP), a Kinder Morgan company, presented a filing with the Massachusetts Department of Public Utilities (DPU) supporting the DPU’s examination into the means by which new natural gas supply capacity may be added to the New England market, counting providing a regulatory mechanism for Massachusetts electric distribution companies (EDCs) to contract for additional natural gas pipeline capacity to assist reduce natural gas and electricity prices in Massachusetts.
In its June 15 DPU filing, TGP noted that Massachusetts and New England are consistently experiencing the highest natural gas and electricity prices in the continental United States, which can be significantly reduced through contracting for and building additional natural gas pipeline capacity to service the region. “The existing shortage of pipeline capacity to serve the demand from the electric generation sector, particularly during the winter, leads to significantly higher regional natural gas prices and, in turn, higher regional electricity prices,” said Kimberly S. Watson, President, Kinder Morgan East Region Natural Gas Pipelines. Over the past two winters, New England’s electricity plants have had to rely on needlessly high-priced natural gas, expensive imported LNG and costly fuel oil purchased on the spot market to meet demand due to insufficient natural gas pipeline capacity serving the region. According to the independent electric grid operator ISO New England, this resulted in New Englanders paying over $7 billion more for electricity during the winters of 2013/14 and 2014/15 than what they paid for electricity during the winter of 2011/12. ISO New England has also noted that although total use of electricity in New England dropped 2 percent in 2014 contrast to 2013, the average price of wholesale electricity rose 13 percent in 2014, with the enhance largely due to the enhance in the cost of power plant fuel, particularly natural gas. “There is no doubt that the increasing cost of natural gas and electricity caused by the lack of adequate natural gas pipeline capacity makes it more costly for New England’s businesses to compete with businesses operating in nearby lower energy cost regions, and is particularly painful for New England’s working families, retirees and others living on fixed incomes,” said Ms. Watson. Ms. Watson added, “The ability to bring additional low-cost, domestic, abundant and environmentally cleaner natural gas to Massachusetts and New England will lower and stabilize energy costs for gas and electric customers and assist stimulate economic growth, providing the opportunity for the Commonwealth of Massachusetts to benefit similarly to other regions of the United States, where low-cost natural gas is transforming their economies by creating new jobs and cost savings for families, businesses and public institutions.”
Kinder Morgan, Inc. operates as an energy infrastructure and energy company in North America. The company operates through Natural Gas Pipelines, CO2, Terminals, Products Pipelines, Kinder Morgan Canada, and Other segments.
Shares of Cheniere Energy, Inc. (NYSEMKT:LNG), declined -0.41% to $70.24, during its last trading session.
On June 10, Cheniere Energy declared two noteworthy liquefied natural gas (“LNG”) project developments that, if accomplished, are projected to add up to about 19 million tonnes per annum (“mtpa”) of incremental LNG production capacity and would bring Cheniere’s aggregate nominal LNG production capacity to about 60 mtpa by 2025.
Cheniere is developing about 9 mtpa of incremental LNG production capacity through the addition of two liquefaction trains adjacent to the existing site of the Corpus Christi liquefaction project (the “CCL Project”). Predictable nominal LNG production capacity of each of these liquefaction trains is about 4.5 mtpa, which would enhance the predictable aggregate nominal LNG production capacity at the CCL Project to about 22.5 mtpa. Cheniere initiated the regulatory process in June 2015 by filing the National Environmental Policy Act pre-filing request with the FERC and the FTA and non-FTA approval requests with the DOE. Regulatory approvals would be predictable in 2017.
In addition, Cheniere has agreed in principle to partner with Parallax Enterprises, LLC, to develop up to 10 mtpa of LNG production capacity through Parallax’s two mid-scale projects, Live Oak LNG and Louisiana LNG. Live Oak is located on the Calcasieu Ship Channel in southwestern Louisiana, and LLNG is located on the Mississippi River about 40 miles from New Orleans. Both projects are predictable to have two liquefaction trains designed for LNG production capacity of about 2.5 mtpa each, utilizing liquefaction process technology and modular equipment developed by Chart Industries, Inc. The facilities are being engineered by Bechtel Oil, Gas, & Chemicals, Inc.
Cheniere Energy, Inc., an energy company, engages in the liquefied natural gas (LNG) related business. It operates through two segments, LNG Terminal Business, and LNG and Natural Gas Marketing Business.
Finally, QEP Resources, Inc. (NYSE:QEP), ended its last trade with -0.21% loss, and closed at $18.61, as Crude oil ended below $60 a barrel as near- record U.S. production prolonged an oversupply amid the lowest trading volatility in eight months.
U.S. crude stockpiles remain 84 million barrels above the five-year average for this time of the year. The nation pumped near the greatest pace in more than three decades even as the rig count plummeted. A measure of future price rises and falls dropped to the lowest level since October.
WTI for August delivery slipped 7 cents to settle at $59.63 a barrel on the New York Mercantile Exchange. Total volume was 53 percent below the 100-day average at 2:50 p.m. Prices were little changed for the week.
QEP Resources, Inc., through its auxiliaries, operates as an exploration and production company. The company acquires, explores, develops, and produces natural gas, oil, and natural gas liquids (NGLs) primarily in the Pinedale Anticline in western Wyoming; the Williston Basin in North Dakota.
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