Natural Gas Market Indicators

January 29, 2010 by Chris McGill · Leave a Comment
Filed under: Natural Gas

Natural gas consumption in the United States (including exports to Mexico) exceeded 100 Bcf per day for the ten-day period January 3, 2010 through January 12, according to Bentek Energy, LLC. It is not uncommon for daily peaks to reach 100 Bcf or more, however, it is unusual that it they would last for ten consecutive days and that they would occur relatively early in the heating season.

The positive working gas balance compared to recent years has disappeared but inventories remain near normal even with the early heating season cold. And still natural gas market acquisition prices (cash and futures) remain in the $5.00 to $6.00 range for the balance of the winter – a continued testament to supply optimism for the coming year.

What are the questions ahead: Will large volume industrial use of natural gas rebound in 2010? Will gas continue to take historical market share from coal in electricity generation? What volume of gas will be required to refill underground storage during the coming net injection season? With a gradually rising national rig count and supportive pricing cause domestic production to remain firm or even grow as it has for the past three years?

Visit this link to download the full Natural Gas Market Indicator. Topics covered include: Reported Prices, Weather, Working Gas in Underground Storage, Natural Gas Production, Rig Counts, Pipeline Imports and Exports, and LNG Markets.

Tags: market indicators

DOE Guarantees $23 Million for Biomass Project

January 27, 2010 by Dan Gibson · Leave a Comment
Filed under: Natural Gas

Nice write-ups from Green Energy Reporter and Business Wire about the Department of Energy (DOE) guaranteeing $23 million to two companies to support construction of a biomass gasifier at its Denver technology center.

From the story:

The grant award will be used to manufacture and install at RETC a 20 ton-per-day ClearFuels biomass gasifier designed to produce synthesis gas from various wood waste and sugar cane bagasse feedstocks. The gasifier will be integrated with Rentech’s existing PDU at the site, which uses the Rentech Process and UOP’s upgrading technologies to produce renewable drop-in synthetic jet and diesel fuels at demonstration scale. This joint demonstration of an integrated bio-refinery is anticipated to be completed in late 2011 and will lead to the final design basis for commercial facilities that are expected to use the combined technologies. The proposed team for the demonstration project includes ClearFuels, Rentech, URS, Linde/Hydro-Chem, Hawaiian Electric Company, National Renewable Energy Lab and Hawaii Natural Energy Institute.

Eric Darmstaedter, Chief Executive Officer of ClearFuels, commented, “We are very pleased with our collaborative discussions with DOE. We expect to complete submission of required supplemental information and start receiving funds in the next few months to facilitate the demonstration of our integrated technologies.”

Rentech, Inc. provides clean energy solutions. The Company’s Rentech-SilvaGas biomass gasification process can convert multiple biomass feedstocks into synthesis gas (syngas) for production of renewable fuels and power. Combining the gasification process with Rentech’s unique application of syngas conditioning and clean-up technology and the patented Rentech Process based on Fischer-Tropsch chemistry, Rentech offers an integrated solution for production of synthetic fuels from biomass. The Rentech Process can also convert syngas from fossil resources into ultra-clean synthetic jet and diesel fuels, specialty waxes and chemicals.

Rentech has a 25 percent strategic ownership interest in ClearFuels, which has begun development of multiple commercial-scale biomass-to-energy projects in the southeastern United States, Hawaii and internationally. These projects are expected to use an integrated ClearFuels-Rentech design and be co-located at biomass processing facilities.

If you’ve got a good biogas story, you can leave a link in the comments below.

Tags: biogas

New natural gas trucks coming to Waste Management

January 26, 2010 by Dan Gibson · Leave a Comment
Filed under: Natural Gas

We get a ton of natural gas vehicle stories coming through the AGA doors. Here’s another one via automotive-fleet.com. Waste Management deployed 12 new compressed natural gas (CNG) trash-collection trucks in Santa Ana and Irvine California. The trucks were purchased with a grant from the Mobile Source Air Pollution Reduction Review Committee (MSRC) in an effort to improve air quality in the Southern California region. Waste Management of Orange County serves more than 200,000 residential customers and approximately 15,000 commercial customers in nine cities and several unincorporated regions of the county.

Every little bit helps and these 12 trucks will reduce greenhouse gas emissions by 218 metric tons each year compared to their diesel counterparts. The equipment upgrade will reduce smog-causing nitrogen oxide emissions by 3.6 tons a year. The collection trucks are quieter and will also reduce noise pollution.

“We are happy to work with Waste Management on their continued effort toward cleaner air in the communities they serve,” said MSRC Vice-Chair Greg Winterbottom, who represents Orange County Transportation Authority on the MSRC. “Their leadership in clean truck technology is gratifying to us at MSRC and we enjoy our partnership with them.”

MSRC granted Waste Management a $32,000 award per truck to purchase seven trucks in Irvine and five trucks in Santa Ana, for a total award of $384,000. The MSRC’s sole mission is to fund projects that reduce air pollution from motor vehicles within the South Coast Air District in Southern California.

“We are committed to helping our region improve air quality and with our new trucks, we are investing in cleaner air,” said David Ross, senior district manager of Waste Management of Orange County.

Tell us about your natural gas vehicle story in the comments below.

Tags: vehicles