As part of a multi-year clean energy effort launched several years ago (see Daily GPI, April 22, 2013), the Los Angeles Department of Water and Power (LADWP) on Monday signed an agreement to sell its 21% share in Arizona-based coal-fired Navajo Generation Station to Navajo's controlling owner, Phoenix-based Salt River Project (SRP). The result of three years of negotiations, the deal includes an agreement to buy geothermal power as a substitute source of power and provisions for SRP to shut down one of the coal plant's three operating units in 2019. Mayor Eric Garcetti said the deal is evidence the city is making good on its commitment to eliminate all coal-fired generation from its portfolio by 2025.
Valinor Management LP and Halcyon Energy Investors LP have joined funds managed by York Capital Management Global Advisors LLC and its affiliates in providing NextDecade LLC with an additional US$85 million in order to take the Rio Grande LNG (RGLNG) and Rio Bravo Pipeline project to final investment decision (FID) (see Daily GPI, March 23; March 9). The parties will also fund continued development of Pelican Island LNG in Galveston, TX. Terms of the transaction include options for NextDecade's three investors to invest the requisite FID equity sufficient to begin construction of the RGLNG project near Brownsville, TX. Together, York, Valinor and Halcyon manage assets exceeding $40 billion. Jefferies LLC served as placement agent for NextDecade. NextDecade said it is in talks with buyers for long-term LNG offtake agreements.
As part of a five-year program, the Northwest Energy Efficiency Alliance (NEEA) has joined the Gas Technology Institute's (GTI) emerging technology program, a collaboration aimed at accelerating the commercialization and adoption of end-use and energy efficiency technologies. The $18.3 million regional market transformation program is expected to save more than 280 million therms annually involving water heating, combined space-water heating and hearth products, along with savings in heating/cooling systems and gas clothes drying. Natural gas utilities in the Pacific Northwest have teamed with NEEA in the effort. NEEA also is funding an emerging technology demonstration project with GTI to pilot three gas-fired heat pump water heaters in the region.
Downeast LNG Inc.has signed a letter of agreement with CB&I for the Downeast liquefied natural gas (LNG) project at Mill Cove in Robbinston, ME, on Passamaquoddy Bay. The initial phase of the project is review of the engineering design, which will serve as the basis for the execution of a front-end engineering design by CB&I. Downeast plans to construct a 3 million tonne per annum LNG export facility consisting of one storage tank, a liquefaction train, a small regasification plant, marine facilities, and a natural gas pipeline that will connect the facility to the existing Maritimes and Northeast Pipeline (see Daily GPI, March 10). Downeast would be able to access unconventional U.S. gas reserves and conventional western Canada gas reserves. Downeast entered Federal Energy Regulatory Commission pre-filing for its proposed export project last July and received its free trade agreement export authorization from the U.S. Department of Energy in early 2015.