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GM (General Motors Corp. ) hits sale of naphtha-based SNG to Consolidated Edison Co. of New York Inc

Journal Article · · Oil Gas J.; (United States)
OSTI ID:6954955

GM has filed charges with U.S. Federal Energy Regulatory Commission (FERC) that a proposed gas sale by National Fuel Gas Distribution Corp. to Con Ed is counterproductive since the distribution firm is buying as much as 60 million cu ft/day of naphtha-based SNG from Ashland Oil Inc.'s Tonawanda, NY, refinery. The U.S. Economic Regulatory Administration (ERA) had approved the purchase by Con Ed of as much as 157.5 million cu ft/day of natural gas from National Fuel. The GM filing is an attempt to intervene in the FERC applications of Tennessee Gas Pipeline Co. and Transcontinental Gas Pipe Line Corp. to transport gas under the Con Ed-National Fuel transaction. According to GM, National Fuel customers may ultimately subsidize the Con Ed natural gas sale since the price of the SNG from Ashland is about twice the price that Con Ed will pay for its gas; the use of naphtha-based SNG counters the ERA objective of cutting the use of oil under the Power Plant and Industrial Fuel Use Act and may reduce the availability of unleaded gasoline in the U.S., since naphtha is used in gasoline blending.

OSTI ID:
6954955
Journal Information:
Oil Gas J.; (United States), Journal Name: Oil Gas J.; (United States) Vol. 77:20; ISSN OIGJA
Country of Publication:
United States
Language:
English