Frustrating Delays for Natural Gas: Interior Energy Project Halted in Argument about IGU Spending
Daily News-Miner reports: For more than a year, progress has effectively been at a halt on the Interior Energy Project that aims to bring the fuel to Fairbanks and provide a lower-cost, more stable heating option for residents. The picture got worse late last month, when an Interior Gas Utility update to the Borough Assembly revealed that IGU has been forced to stop work on the project because of a dispute with the Alaska Industrial Development and Export Authority, which controls the state funds granted to the project. Looming over the drama that has caused the recent work stoppage is a larger structural problem: The three-year oil price slump that has cratered state revenues has also hurt the profitability of natural gas, making the work of lining up a supplier, along with finalizing the purchase and transfer of Fairbanks Natural Gas parent company Pentex — significantly more difficult.
U.S. Natural Gas Futures Spike Higher after Weekly Storage Data
Corpus Christi Caller Times reports: A Houston -based midstream energy company announced plans to build a 510-mile natural gas pipeline that would connect the Corpus Christi area to the Permian Basin. Permico Energia’s $2 billion pipeline system would include a fractionator in the Coastal Bend to separate the natural gas into individual products, such as ethane, propane and butane. It also would include a 350-mile system that will transport product to other Texas Gulf Coast industrial markets, including the Mont Belvieu area near Houston.