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DOE (U. S. Department of Energy) backs first coal gasification plant

Journal Article · · Oil Gas J.; (United States)
OSTI ID:6988141
The American Natural Gas Co. and Peoples Gas Co. coal-gasification project in Mercer County, N.D., has been joined by Columbia Gas Systems Inc., Tenneco Inc., and Transco Co. Inc. The plant will at first be capable of producing 125 million cu ft/day of pipeline quality gas for delivery into the interstate pipeline system. The consortium proposes later to double plant production after the economics of operation has been established. DOE officials have announced that the U.S. Economic Regulatory Administration (ERA) will intervene before the U.S. Federal Energy Regulatory Commission (FERC) in support of the consortium's filing for specific regulatory decisions, which are expected to make financing for the $1.4 billion project attractive by insuring the debt through assessments on customers. The ERA estimates that total cost of the coal gas delivered to interstate pipelines will be $5.50/million Btu in 1978 dollars ($8/million Btu in 1985 dollars), compared with imported LNG estimated at $4.27, Alaskan gas at $4.20, and domestic gas at $2.26. Provisions that the ERA will suggest to FERC regarding the project are discussed.
OSTI ID:
6988141
Journal Information:
Oil Gas J.; (United States), Journal Name: Oil Gas J.; (United States) Vol. 76:24; ISSN OIGJA
Country of Publication:
United States
Language:
English