SemGroup Corp. and Exterran Holdings Inc. are developing a gas processing plant for SemGas LP to service growing midstream services demand in the Mississippi play. SemGas has agreed to buy the new gas processing plant and associated compression equipment. It is expected that the plant will be designed and fabricated by Exterran to handle a throughput of 60 MMcf/d and will feature cryogenic technology for natural gas liquid extraction and enhanced ethane recovery. Exterran offers pre-engineered processing plants in quantities of 60, 150 and 200 MMcf/d nominal capacity.

Pacific Gas and Electric Co. (PG&E) has dedicated its natural gas-fired combined cycle 657 MW Colusa power plant near Maxwell, CA, in Colusa County. The facility was originally proposed by an independent developer with which the utility had a long-term contract for the plant’s output. The plant uses dry cooling, which requires 97% less water than water-cooled combined-cycle plants. “Colusa yields 35% less carbon dioxide for every megawatt-hour of power it produces due to its higher efficiency and low-emissions technologies,” PG&E said.

The municipal utility for San Antonio, TX, CPS Energy, is preparing to bid on an 800 MW gas-fired plant near San Antonio to replace coal-fired units it plans to retire by 2018. The utility previously announced plans to retire by 2018 its 871 MW JT Deely coal-fired plant to avoid the need to invest $3 billion in environmental controls to comply with federal emissions rules (see Daily GPI, June 24). If it does acquire the undisclosed plant, the utility plans to buy gas from the Eagle Ford Shale, CPS Energy officials told the San Antonio Express-News. The winning bid is to be selected next month with the sale likely to close 1Q2012, CPS Energy officials said.

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