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Trump orders aluminum and steel tariffs; opposition boosting costs for pipes

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Trump orders aluminum and steel tariffs; opposition boosting costs for pipes

Top News

Trump orders aluminum and steel tariffs on national security grounds

President Donald Trump signed orders enacting tariffs of 25% on global steel imports and 10% on aluminum, pledging to boost American production and security.

Opposition boosting costs for pipes, but midstream execs say business is booming

Increasingly sophisticated opposition to oil and gas pipelines is adding costs to projects as developers work to get ahead of protests and litigation, but midstream executives say there is still no better time to be in the business.

New US coal prospects 'very limited,' says supplier to suspended Kemper project

Opportunities for new coal mining projects in the U.S. are likely "very limited," according to the miner who was to provide fuel for a suspended coal gasification project that aimed to demonstrate the potential of carbon capture technology.

Power

* New information showing groundwater contamination at coal ash storage sites across the country does not reveal a threat to public safety, and more testing has been planned to provide a fuller picture of the situation, according to some of the utilities releasing that information.

* Algonquin Power & Utilities Corp. completed the acquisition of a 25% equity stake in Atlantica Yield plc from Abengoa SA for about US$608 million. The company also completed the formation of a joint venture with Abengoa that will be focused on the development and construction of global clean energy and water infrastructure assets.

* Texas regulators on March 8 unanimously approved Sempra Energy's acquisition of Oncor Electric Delivery Co. LLC, the last obstacle overcome by the California company in its purchase of the Texas transmission and distribution utility.

* By a vote of 215-189, the U.S. House of Representatives passed a bill that would ease up federal emissions standards for coal refuse-to-energy facilities. The bill would still require stringent emissions reductions at the waste coal-to-energy plants, "but ones that are achievable for these facilities," said U.S. Rep. John Shimkus, R-Ill.

* Texas regulators directed the state's grid operator to make market rule changes that could add to generator revenues.

* As expected, the New Orleans City Council has approved Entergy Corp.'s $230 million proposal to build the 226-MW New Orleans gas-fired peaker plant to ensure localized reliability.

* Spark Energy Inc. hired Morgan Stanley as a financial adviser to explore strategic alternatives. "We believe that our stock price has not reflected the strong growth in financial performance we have shown over the past three and a half years as a public company, and look forward to examining additional opportunities to unlock shareholder value," President and CEO Nathan Kroeker said.

* The U.S. Bureau of Land Management is soliciting public comments on Sonoran West Solar Holding LLC's rights-of-way request for the planned 350-MW Crimson solar project in California. The project site consists of about 2,700 acres of BLM-managed public land.

* San Antonio utility CPS Energy faced backlash from city leaders and environmentalists over its newly unveiled plan that could see the city-owned utility continue to use coal- and gas-fired generation through at least 2040, The San Antonio Express News reported.

* Marco Alvera, CEO of Italy-based natural gas transmission firm Snam, said at a panel discussion at CERAWeek that natural gas could play an increasing role in developing the renewable energy market, as storing natural gas is more cost-effective and efficient than wind and solar battery storage systems, The Houston Chronicle reported.

* Saudi Arabia has hired three U.S. law firms to help the oil-rich country secure a nuclear power deal with the U.S., The Hill in Washington, D.C., reported.

Natural gas/Oil

* Fossil fuel companies could be at risk of "wasting $1.6 trillion" of expenditure by 2025 if they base their business on emissions policies already announced by governments instead of international climate goals, according to a new Carbon Tracker Initiative report that models the International Energy Agency's 1.75 degrees C scenario.

* The Permian Basin has regained the crown as the world's most important oil and gas play and should hold it for some time, the heads of Pioneer Natural Resources Co. and XTO Energy Inc. said at a vast industry conference in Houston.

* Hundreds of church leaders have come out in opposition to the Trump administration's proposed offshore drilling plan, saying offshore drilling "brings unacceptable risks to God’s oceans and coastal communities, the groups wrote in a letter to President Donald Trump and Interior Secretary Ryan Zinke.

* The Alberta Energy Regulator suspended Sequoia Resources Corp.'s operating licenses for thousands of untended Alberta wells after the oil and gas company told the regulator that it was ceasing operations and would not be able to recover all of its assets due to "defaults in municipal tax payments," The Canadian Press reported.

* Washington policy experts believe the steel tariffs proposed by the Trump administration could cause some U.S. pipeline companies to cancel projects and potentially hurt gas exports to Mexico.

* The Alberta government unveiled a bill that will allow the provincial Petroleum Marketing Commission to offer grants, provide loan guarantees and make direct equity investments into "value-added" energy projects in Alberta, The Calgary (Alberta) Herald reported.

* The "Keep it in the Ground" movement has sparked more protests, which are now "more organized" in efforts to oppose and slow down development of oil and natural pipeline projects, The Houston Chronicle reported, citing pipeline executives.

Coal

* Corsa Coal Corp. has decided to sell its thermal and industrial coal division in Tennessee, Central Appalachia, to a buyer group led by the division's current management team.

* Total U.S. coal rail traffic for the week ended March 3 inched up less than 1% year over year to 85,300 carloads, according to data from the Association of American Railroads.

Commodities

* The market monitor for PJM Interconnection said that during 2017, it was mostly higher natural gas prices that brought about the year-over-year increase in power prices. While it found market results to be competitive, it raised concerns about market power mitigation looking ahead.

* Day-ahead power markets around the U.S. could see varied moves to conclude the week Friday, March 9, as traders look to mixed post-weekend demand forecasts and weaker natural gas prices.

* Following a finish 2.1 cents lower at $2.756/MMBtu, April natural gas futures were extending lower overnight ahead of the Friday, March 9, trading session. At 7:30 a.m. ET, the contract was 1.1 cents lower at $2.745/MMBtu.

* At the over-the-counter market, California carbon allowances extended lower in the wake of the latest quarterly greenhouse gas allowance auction held by the Western Climate Initiative.

* The U.S. Energy Information Administration reported a net 57-Bcf withdrawal from natural gas inventories in the Lower 48 during the week ended March 2 that was at par with the corresponding week in 2017 and well below the five-year average.

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New from RRA

* The South Carolina House of Representatives on March 7 passed, 107-1, an amended version of Senate Bill 954, legislation that would effectively remove from South Carolina Electric & Gas Co.'s annual rates some $445 million that the company is collecting for abandoned V.C. Summer units 2 and 3.

* At the Public Utility Commission of Texas's March 8 open meeting, Commissioner Brandy Marty Marquez announced her intention to resign from the PUC, effective April 2.

* For the water utility sector, the focus in February was on the pending cost of capital proceeding in California, which will impact the ROEs for the four largest investor-owned water utilities in the state. This will remain a key issue to watch for in this sector in the months to come.

Quoted

"Simply put: This is a tax hike on American manufacturers, workers and consumers. Slapping aluminum and steel imports with tariffs of this magnitude is misguided," said Senate Finance Committee Chairman Orrin Hatch, R-Utah.

The day ahead

* Early morning futures indicators pointed to a mixed opening for the U.S. equity markets. To view more SNL equity market indexes, click here. To view more SNL Energy commodities prices, click here.

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