Natural gas pipeline expansion in Northeast
Multiple pipeline expansion projects are expected to begin service this winter to increase natural gas takeaway capacity from the Appalachian Basin's Marcellus Shale play, where production has increased significantly over the past two years. These new projects are largely focused on transporting gas to the New York/New Jersey and Mid-Atlantic regions and would have limited benefit for consumers in New England, where price spikes during periods of peak winter demand appear likely to persist.
Expansion projects with expected in-service dates between 2013 and 2015 would add at least 3.5 billion cubic feet per day (Bcf/d) of additional capacity to New York/New Jersey and Mid-Atlantic markets. More than 2.0 Bcf/d of expansions are expected for this winter alone. The largest of these is the 0.78 Bcf/d New York-New Jersey Expansion project on a portion of Spectra Energy's Texas Eastern Transmission Company (TETCO) pipeline from Linden, N.J., to Manhattan, N.Y. On Oct. 17, the Federal Energy Regulatory Agency (FERC) authorized the start of initial service on these expansions.
New England consumers, however, would not significantly benefit from currently planned pipeline expansions until 2016. The Algonquin Gas Transmission (AGT) pipeline, which takes gas from Marcellus and other sources to consumers in New England, has traditionally operated at near-full capacity during periods of peak winter demand. The next planned expansion on AGT is the Algonquin Incremental Market (AIM) project, which would enable the pipeline to flow north an additional 0.42 Bcf/d of gas received at its interconnect with Millennium Pipeline in Ramapo, N.Y. The target in-service date for the AIM Project is Nov. 1, 2016.
The difference in construction activity for New York and New England markets is reflected in market prices for natural gas. Monthly forward prices for gas purchased at AGT continue to spike in winter months compared to the nationwide benchmark price for gas purchased at Henry Hub in Erath, La. By contrast, the forward price at the Transco Zone 6-New York (TZ6-NY) trading hub is similar to the Henry Hub forward price.
In addition to TETCO's New York-New Jersey Expansion project, a number of projects are expected to increase the takeaway capacity of Marcellus gas this winter to consumers in the New York/New Jersey and Mid-Atlantic regions, or were planned for this winter but have experienced delays.
Source: U.S. Energy Information Administration
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.