Spectra Energy Partners LP has launched its second open season in less than a year to further expand its East Tennessee Natural Gas (ETNG) system. Spectra in March completed an open season for its Greenway Project, which was designed to expand capacity on the ETNG system. That open season resulted in bids from about 30 different shippers, which exceeded 900,000 Dth/d (see NGI, March 10). ETNG carries up to 1.3 Bcf/d across 1,400 miles in the Southeast. Its Saltville Gas Storage facility, which has 5.5 Bcf of working capacity, is adjacent to the system in Virginia. After evaluating requests received during the Greenway open season, ETNG decided it wanted to further expand, with the new expansion to be called Greenway-Blue Ridge. The latest expansion project, called Greenway-Blue Ridge, would up to 275,000 Dth/d from the Appalachian supply basin to Southwest Virginia to ETNG's Cascade Creek interconnect with Transcontinental Pipeline in North Carolina. The extent and nature of the Greenway-Blue Ridge expansion would be finalized following the results of the open season, and at that time, ETNG would seek to execute binding precedent agreements with shippers. The expansion is expected to enter service as early as November 2010. Nominations for the open season will be accepted through 5 p.m. EDT Oct. 31. For more information contact William Wickman at (865) 692-2110 or by email at email@example.com.
ConocoPhillips kicked off the U.S.-based majors' 3Q2008 earnings season, with profit rising to $5.19 billion ($3.39/share) from $3.67 billion ($2.23) in 3Q2007. Revenues also were strong, jumping to $70 billion versus $46.1 billion a year ago. The Houston-based producer generated $7.5 billion of cash from operations during the quarter, which enabled it to invest $4 billion in exploring for and developing oil and natural gas supplies, enhancing refining capabilities, and fostering emerging technologies, said CEO Jim Mulva. "It also enabled us to repurchase $2.5 billion of ConocoPhillips common stock and pay $0.7 billion in dividends. We ended the quarter with debt of $22.1 billion and a debt-to-capital ratio of 19%." Exploration and production (E&P) quarterly net income was well ahead of the same period a year ago, rising to $3.928 billion, compared with $2.08 billion in 3Q2007. However, the E&P profit was down slightly from 2Q2008, which the producer attributed to lower crude oil and natural gas prices, partially offset by a net benefit from asset rationalization efforts, favorable foreign exchange impacts and lower production taxes. Compared with a year earlier, the company credited the higher E&P earnings to higher commodity prices, partially offset by higher production taxes, increased operating costs and lower volumes. Daily production from the E&P segment, including Canadian Syncrude, averaged 1.75 million boe/d, which was flat compared with 2Q2008 and in 3Q2007. When compared with 2Q2008, ConocoPhillips said production from new developments in the United Kingdom, Russia and Norway largely offset planned and unplanned downtime, which included hurricane disruptions in the Gulf of Mexico, as well as normal field decline. The production impact from hurricane disruptions was estimated at 17,000 boe/d.
A bankruptcy judge in New York has approved the sale of Eagle Energy Partners I LP to EDF Trading North America by bankrupt Lehman Brothers Holdings Inc. (see NGI, Oct. 6). The deal requires the approval of the Federal Energy Regulatory Commission, and the parties are seeking a Commission order by Friday (Oct. 31). Eagle, a Houston-based wholesale gas and power marketer, is just the latest enterprise to be targeted by EDF as the international conglomerate seeks bargains in an energy patch rocked by troubles on Wall Street and beset by credit worries. EDF Trading, which is owned 100% by France's EDF Group, trades in the international wholesale energy markets, buying and selling electricity, emissions, natural gas, coal, freight, biomass and oil.
FERC dismissed Quoddy Bay LNG LLC's application to build a liquefied natural gas (LNG) terminal in Washington County, ME, citing the failure of the company to provide requested information. FERC also separately indicated that the fate of pipeline to serve the Downeast LNG terminal proposed for Robbinston, ME, was uncertain due to the fact that it has not yet held an open season. "To date, Quoddy Bay has not provided the previously requested information, nor has Quoddy Bay provided any further information regarding the possible revisions to the project design disclosed in its Feb. 29, 2008 filing. Therefore, I am dismissing your application for the construction and operation of an LNG import terminal," wrote J. Mark Robinson, director of FERC's Office of Energy Projects. FERC's dismissal is without prejudice to Quoddy Bay, meaning that the LNG developer could refile once it is able to finalize its design and provide a complete application. The application would be treated as a new proceeding rather than a continuation of the current application process, FERC said. The existing Quoddy LNG application has been pending at the Commission since December 2006. The dismissal came six months after the Commission notified Quoddy Bay LNG that it had suspended review of the project for its failure to submit information on its proposed revisions to the project's vaporizer facilities and other potential alterations (see NGI, April 28). Quoddy's proposal called for the construction of a 2 Bcf LNG import terminal at Split Rock, ME, and a storage project in Perry, ME. The 15-acre site abuts the Passamaquoddy and Cobscook bays [CP07-38]. The project included a 35.8-mile-long gas pipeline from the LNG terminal to the interstate gas pipeline in the Town of Princeton, ME. As for the Downeast pipeline, if it "desires the Commission staff to continue its current review [of the project], then within 20 days of the date of this letter Downeast must provide its schedule for conducting [an] open season."
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