PAA Natural Gas Storage LLC has begun commercial operations of the second of three storage caverns at its Pine Prairie facility in Evangeline Parish, LA, increasing aggregate working gas capacity to approximately 13.8 Bcf. Phase I development of the Pine Prairie facility consists of three caverns with aggregate permitted capacity of 24 Bcf. The first cavern began operation in October. The second cavern received the requisite permits in March and has just begun operations. Leaching operations on the third cavern began in December, and this cavern is expected to begin operations during the second quarter of 2010. The company is indirectly owned 50% by Plains All American Pipeline LP and 50% by Vulcan Capital.

Houston-based Noble Energy Inc. announced a discovery offshore in the deepwater Gulf of Mexico (GOM) at the Santa Cruz prospect in Mississippi Canyon Blocks 519/563. The well, located in 6,515 feet of water, was drilled to a total depth of 18,900 feet. Open-hole logging indicated more than 140 feet of net gas condensate pay and more than 110 feet of net oil pay in multiple high-quality reservoirs. The overall thickness of the reservoirs encountered was more than originally estimated, Noble said. Current plans consist of subsea tiebacks to nearby infrastructure, with first production in 2011. The next exploration test “likely” will be late this year at Deep Blue in the Green Canyon region, “which will be testing our largest deepwater GOM prospect to date,” said Noble COO David Stover. Noble operates the Santa Cruz discovery with a 23.25% stake. BP Exploration & Production Inc. has a 46.5% interest in the project, while Red Willow Offshore LLC controls 20.25% and Houston Energy LP holds a 10% stake.

SUEZ LNG NA LLC will soon resume work on the Neptune LNG Deepwater Port, the subsidiary of GDF SUEZ Energy North America said. Neptune will be located about 10 miles off the coast of Gloucester, MA. A vessel will survey a 13-mile pipeline lateral that was laid and buried in the seafloor last year. In early May two construction vessels will begin installation of the pipeline manifolds and the hot tap that connects the pipeline lateral to the existing Spectra Energy HubLine, SUEZ said. In July another vessel will begin buoy installation. Work areas will be primarily limited to the submerged buoy connections in federal waters and the HubLine connection in Marblehead waters, with exclusion zones surrounding the construction vessels. Progress updates are available at: www.neptunelngconstruction.com. The Neptune port ultimately will consist of an unloading buoy system where specially designed LNG vessels will moor and discharge gas via onboard vaporization. The gas will be transported via the pipeline lateral to Spectra’s HubLine, which will deliver the gas throughout New England.

The Minerals Management Service (MMS) has set Aug. 19 for its Western Gulf of Mexico (GOM) Lease Sale 210. The proposed lease sale, to be held in New Orleans, encompasses about 3,400 unleased blocks covering 18 million acres in the Western GOM Planning Area, which is offshore Texas. The blocks are located from nine to about 250 miles offshore in water depths of 16 feet to more than 10,975 feet (five to 3,346 meters). The sale could result in the production of 1.64-2.64 Tcf of gas and 242-423 million bbl of oil, MMS said. To view the proposed terms and conditions for the sale, go to www.gomr.mms.gov. The Final Notice of Sale and the lease terms are to be published at least 30 days before the event, MMS said. Copies are available by contacting the MMS GOM Regional Office, Public Information Unit, 1201 Elmwood Park Blvd., New Orleans, LA 70123; or by calling (504) 736-2519 or 800-200-GULF.

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