Fuel Oil News

Fuel Oil News November 2015

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FYI: KINDER MORGAN ANNOUNCES ADDITIONAL GAS CAPACITY COMMITMENTS TO THE NORTHEAST ENERGY DIRECT PROJECT Kinder Morgan, Inc. announced that its subsidiary, Tennessee Gas Pipeline Company (TGP), has executed agree- ments with producers, local distribution companies and a New York end-use market participant totaling 627,000 deka- therms per day for the Supply Path component of the proposed Northeast E n e r g y D i r e c t P r o j e c t . T h e a g r e e - ments will provide a direct supply link from abundant natural gas fields in Pennsylvania to existing and future Northeast and New England markets, and firm transport of incremental sup- plies for delivery at or near Wright, New York. From the Wright area, shippers can deliver into the Market Path com- ponent of the NED project for transport to Dracut, Massachusetts, or into TGP's existing pipeline system or into the Iroquois Gas Transmission system. The incremental gas supplies will help meet New York and New England's growing consumer and industrial gas needs, as well as helping to bolster electric reliability in the region. TGP is continuing to negotiate with additional potential shippers on the NED project, including LDCs and others, and expects to announce these commit- ments and others at a later date. NED's Supply Path component, from northeastern Pennsylvania to Wright, New York, is scalable up to 1.2 billion cubic feet per day, and its Market Path component is scalable up to 1.3 Bcf/d. The NED project, including the Supply Path and Market Path components, has a planned in-service date of November 2018, subject to regulatory approvals. Additionally, the NED Supply Path com- ponent and associated agreements are subject to approval by the Kinder Morgan board of directors. API: EPA'S REFINERY RULE IS MUCH IMPROVED BUT REMAINS COSTLY EPA has made substantial improvements in the final refinery sector rule over the proposal, but EPA's new regulations on refineries could still cost up to $1 billion, according to API Downstream Group Director Bob Greco. "EPA analyses, supported by exten- sive industry monitoring data, show that air emissions from refineries are already at safe levels," Greco said. "The refinery industry has proven we can provide reli- able American energy while protecting the environment and local communities, and collaborative efforts by API and the EPA led to final regulations that are more cost-effective than the proposal." Refineries have been reducing emis- s i o n s f o r d e c a d e s u n d e r v o l u n t a r y programs and in compliance with exist- ing regulations. Through comments made during the rulemaking process, API identified and supported practical, cost-effective opportunities to even fur- ther reduce emissions in a manner that recognizes the complexity of the industry, which EPA took into account. "Despite these improvements, regu- lators need to be thoughtful about the additional impacts of new regulations and added costs to delivering affordable energy to U.S. consumers," said Greco. "Companies have already spent billions of dollars to reduce emissions by installing flare gas recovery and flare minimiza- tion systems to reduce greenhouse gas emissions, and air quality continues to improve as a result of these voluntary pro- grams and existing regulations." CONSERVATION & CITIZEN GROUPS CALL ON FERC AND NJ DEP TO DENY PENNEAST PIPELINE Conservation and citizen groups called o n t h e F e d e r a l E n e r g y R e g u l a t o r y C o m m i s s i o n a n d t h e N e w J e r s e y Department of Environmental Protection to deny PennEast's application to build a proposed pipeline that would cut through Mercer and Hunterdon counties, accord- ing to the group, causing irreparable harm to over 4,000 acres of preserved open space and farmland, 31 of the state's cleanest and most ecologically significant streams, and many landowners and com- munities. "We can never condone PennEast's taking land away from families for their unneeded project," said Patty Cronheim, founder of Hopewell Township Citizens Against the Pipeline. Cronheim said PennEast is pressing ahead with their application; despite the fact the land- owners in New Jersey have denied survey access for the proposed pipeline on 70% of the proposed route. Calendar of Events NOVEMBER, 2015 SIGMA Annual Meeting November 9-11, 2015 Westin Copley Place Boston, MA 703-709-7000 DECEMBER, 2015 OPIS LCFS Workshop December 10-11 Grand Hyatt San Francisco, CA 415-398-1234 Reservations: 415-398-1234 JANUARY, 2015 National Biodiesel Board Conference & Expo January 25-28 Tampa Bay Convention Center Tampa, FL Registration: http://biodieselconference.org/2016/ FEBRUARY, 2015 Western Petroleum Marketers Association Convention February 16 – 18 The Mirage Hotel Las Vegas, NV 801-263-9762 Email: info@wpma.com MARCH, 2015 NTEA- The Work Truck Show March 2–4 Indiana Convention Center Indianapolis, IN 800-441-6832 Web: www.ntea.com DATELINE BREAKING NEWS 4 NOVEMBER 2015 | FUEL OIL NEWS | www.fueloilnews.com

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