TransCanada Corp.'s ANR Pipeline began a weeklong binding open season on Friday to support the reversal of its Southeast Main Line (SEML) from rate zone ML-3 to the ML-1 tariff rate zone near Eunice, LA. The SEML reversal project consists of up to 600,000 Dth/d of southbound firm capacity. The open season follows past successful ANR open seasons targeting the connection of burgeoning Utica/Marcellus shale supply to markets across ANR's system. These include the pipeline's Lebanon project (350,000 Dth/d); the fully subscribed Glen Karn project (133,673 Dth/d); and the open season for remaining SEML existing capacity, which closed on March 5 and will provide shippers with 646,000 Dth/d of capacity. ANR said it is in the process of refining its next wave of system expansions and market offerings, perhaps in combination of a new greenfield project out of the Utica Shale. Its intention is to have its next market offering shortly after the close of the SEML reversal open season.
Southcross Energy Partners LP has acquired about 50 miles of natural gas pipelines near Corpus Christi, TX, along with related contracts, for about $40 million in cash from Onyx Midstream LP and Onyx Pipeline Co. The pipelines, which range from 12 inches to 24 inches in diameter, transport natural gas to two power plants in Nueces County, TX, under fixed-fee contracts that extend through 2029. Volumes moved through the pipelines averaged 97 MMcf/d during 2013.
The Alaska Department of Natural Resources will hold its annual Cook Inlet and Alaska Peninsula areawide oil and gas lease sales on May 7 at the Dena'ina Civic and Convention Center in Anchorage. The Cook Inlet Areawide lease sale area is divided into 815 tracts ranging in size from 100 to 5,760 acres. The Alaska Peninsula Areawide lease sale area is divided into 1,047 tracts ranging in size from 1,280 to 5,760 acres. "Cook Inlet holds significant oil and gas resources and we are looking forward to a successful lease sale and the continued development of these resources," said Division of Oil and Gas Director Bill Barron. Last year's Cook Inlet lease sale was the third largest of its kind in nominal dollars and the sixth largest in acreage leased since the state's area-wide lease sale program began in 1999, officials said (see Daily GPI, May 9, 2013). Bidders must be qualified by May 2 and bids must be received by May 5. Visit the department's Division of Oil and Gas website for more information.
Edison International merchant power unit Edison Mission Energy’s (EME) reorganization plan was approved Tuesday by the U.S. Bankruptcy Court, including a Feb. 18 settlement agreement reached among EME, Edison International and certain of EME’s creditors. This approval allows the planned sale of substantially all of EME’s assets and stock of subsidiaries to Princeton, NJ-based NRG Energy Inc. Under the reorganization and settlement agreement, EME will emerge from bankruptcy free of liabilities and remain a subsidiary of Edison International, the Rosemead, CA-based holding company said. Once a high-flying global merchant power plant developer/operator tied to one of the top U.S. energy holding companies, EME spiraled into Chapter 11 bankruptcy two years ago (see Daily GPI, Dec. 19, 2012).
Progress Energy Canada Ltd., a subsidiary of Petroliam Nasional Berhad, has completed an agreement to acquire Talisman Energy Inc.'s assets in the Julienne area of the Montney formation in northeast British Columbia (see Daily GPI, Nov. 8, 2013). Progress also acquired Talisman's interest in the Kobes area where they had joint operations, and a half-stake in Talisman's interest in the Farrell and Cypress areas (see Shale Daily, Dec. 21, 2010). Progress in January completed a transaction to acquire other Julienne assets, including four uncompleted wells and about 33,500 net acres. Talisman retains its Groundbirch and Saturn assets, including 48,000 net acres of prospective Montney land.
Newly re-formed Rock Oil Holdings LLC has secured a private equity commitment of up to $250 million from Riverstone Holdings LLC subsidiaries to secure acreage in the Eagle Ford and Utica shales, and the Permian Basin. Company executives previously built a leasehold and associated production in the Eagle Ford, which were sold in separate transactions in 2012 and 2013 to Sabine Oil & Gas LLC and Sanchez Energy Corp. Abraxas Petroleum Corp. in 2010 had partnered in the play with predecessor Blue Stone Oil & Gas LLC (see Shale Daily, Aug. 30, 2010). Affiliate Riverstone Energy Ltd. also has committed $82 million to privately held Fieldwood Energy LLC, which it formed and which is the largest producer in the Outer Continental Shelf of the Gulf of Mexico (see Daily GPI, March 12).
California power plant regulators decided Wednesday to begin the certification process for building a new natural gas-fired baseload generation plant along the coast in Long Beach to replace an older gas-fired plant that faces retirement because of new statewide restrictions on using ocean water for cooling coastal power plants. The California Energy Commission unanimously agreed to begin the formal siting proceedings for AES Southland Development LLC's proposed 1,936 MW Alamitos Energy Center, concluding the power plant operator's application was "data adequate." If certified, the new plant would replace the existing 2,000 MW AES Alamitos facility that uses once-through cooling, which has been deemed to harm marine life.