Natural Gas News – January 20, 2017
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In the News
U.S. regulator to probe Kinder Morgan natural gas pipeline rates
Reuters reported: U.S. federal energy regulators said Thursday they would investigate rates charged by two natural gas pipelines operated by Kinder Morgan Inc to determine if they may be over-recovering costs, resulting in unjust and unreasonable rates. The U.S. Federal Energy Regulatory Commission (FERC) said it reviewed cost and revenue information provided by the Natural Gas Co of America (NGPL) and the Wyoming Interstate Co pipelines in their publicly available annual reports for 2014 and 2015. In response to the FERC investigation, Tom Martin, president of Kinder Morgan Natural Gas Pipelines, said in a statement, “The FERC has chosen to interject itself in an unwarranted and unfair manner in the productive relationships between the companies and their customers.” Based on its review of the data, FERC said it estimates NGPL’s return on equity for those calendar years to be 28.5 percent and 20.8 percent, respectively. Kinder Morgan disputed FERC’s calculation and said the return on equity for its NGPL unit was 17.7 percent in 2014 and 15.7 percent in 2015. For more visit reuters.com or click http://reut.rs/2iJ7oSQ
EIA reports decline of 243 billion cubic feet in U.S. natural-gas supplies
MarketWatch reports: Natural-gas futures turned higher Thursday after the U.S. Energy Information Administration reported that supplies of natural gas fell by 243 billion cubic feet for the week ended Jan. 13. That was a higher than the decline of 238 billion cubic feet expected by analyst polled by S&P Global Platts. Total stocks now stand at 2.917 trillion cubic feet, down 431 billion cubic feet from a year ago and 77 billion cubic feet below the five-year average, the government said. For more visit marketwatch.com or click http://on.mktw.net/2jwjDiH
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