Entergy Corp. and The Shaw Group Inc. have created EntergyShaw LLCto provide management, engineering, procurement, construction andcommissioning services to build electric plants worldwide. The twosigned the letter of intent to form the new company in early June. Itwill be headquartered in Baton Rouge, LA (see Daily GPI, June 5). Entergy and Shaw each will own a50% interest in the new company and Jim Early, a Shaw senior vicepresident, has been appointed president. In the next few years, thecompany is expected to manage the construction of several powerprojects, with a total capital value of more than $6 billion. Theactual number of projects was not announced.

Capstone Turbine Corp., headquartered in Chatsworth, CA, hasreceived a 100-unit, one-year order for its microturbine powersystems from The Hanover Co., part of a new distribution agreementin which Hanover will serve as the nationwide provider of CapstoneMicroTurbine r power systems for oil and gas operations. In theseapplications, Capstone MicroTurbines use wellhead gases commonlyfound at extraction sites as a fuel to generate electricity.

Convergent Group Corp., headquartered in Englewood, CO, andLouisville Gas & Electric Co. will begin working together totransform LG&E’s business into a system-wide digital utility.The agreement includes providing a business model and consultingengineering services to improve the utility’s energy deliveryoperations for its 289,000 natural gas and 370,000 electriccustomers in Louisville, KY and surrounding counties. Convergentalso will build and manage the digital utility.

American Electric Power’s Jefferson Island Storage & Hubproject near the Henry Hub in Vermilion Parish, LA, has completed amajor expansion project and will have an additional 2 Bcf ofworking gas capacity available starting Oct.1. The expansioninvolved the re-watering of one of the facilities two existing saltcaverns. It basically doubled the facility’s capacity to 10 Bcf oftotal storage, including 7 Bcf of working gas. Injection capacitywas expanded to 240 MMcf/d from 180 MMcf/d and deliverability wasincreased to 800 MMcf/d from 360 MMcf/d. A total of 2 Bcf ofworking capacity is available for contracting. Companies interestedin leasing storage space should call AEP Energy Services at (832)397-3400. The Jefferson Island storage facility provides access toeight pipeline systems, including Louisiana Interstate Gas, TexasGas, Tennessee, Columbia Gulf, Sea Robin, Koch Gateway, NGPL andSabine.

Duke Energy Gas Transmission (DEGT) completed the acquisition ofthe natural gas salt cavern storage business known as Market HubPartners (MHP) yesterday from subsidiaries of NiSource, Inc. for $250million cash and the assumption of $150 million in debt. As reportedin Daily GPI last month, the deal includes 23 Bcf of storage capacitywith expansion capabilities (see Daily GPI, Aug. 31). Active facilities included inthe sale is the Egan storage facility located in Acadia Parish, LA,and Moss Bluff storage facility of Liberty County, TX, while storageprojects in Mississippi and Pennsylvania are under development.

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