Phoenix-based Freeport-McMoRan Inc. has withdrawn a proposal to publicly launch its oil and natural gas unit citing poor market conditions. The global conglomerate said it determined "not to proceed with the initial public offering..." The operator reported its sixth straight quarterly loss in 1Q2016, and said poor market conditions have prevented it from finding a buyer for the entire U.S.-focused energy business (see Daily GPI, April 27). However, a "number of parties" have expressed interest in some assets. The oil and gas unit, based in Houston, is being folded into the corporation. The company plans to take a $40 million charge in 2Q2016 related to a 25% workforce reduction and restructuring.
Tennessee Gas Pipeline Co. LLC (TGP) formally submitted a notice of withdrawal of certificate application with FERC for its Northeast Energy Direct (NED) project on Monday. TGP, a Kinder Morgan Inc. company, first proposed the $5 billion project to the Federal Energy Regulatory Commission last November, but canceled its plans four months later after drawing an insufficient amount of customer interest (see Daily GPI, April 21; Nov. 20, 2015). NED called for an expansion of the TGP system in Pennsylvania, New York and New England. The project [CP16-21] would have provided additional supplies of Marcellus Shale gas from northern Pennsylvania to customers in New York and New England.