2007

The New York Mercantile Exchange Inc. (Nymex) announced Monday that it will list an option on the October 2007/January 2008 intermonth spread for natural gas calendar spread options contracts, beginning Tuesday. This is in addition to the current listing of 24 consecutive options on one-month spreads. Options on spreads between the first and third nearby months, the first and fourth nearby months, the second and fourth nearby months, as well as the spreads between the first nearby June to the first nearby December, first nearby December to first nearby June, the first nearby December to the second nearby December, first nearby October to the first nearby January, the first nearby April to the second nearby October and the first nearby October to the second nearby April contracts will continue to be listed for natural gas calendar spread options.

Sugar Land, TX-based Noble Corp. announced Thursday that Chairman and CEO James C. Day will retire effective April 30, 2007, which is consistent with a long standing succession planning process within the company. Day will retire from the board and the company after 30 years of service, 24 of which he has served as CEO. The board of directors also announced that it is their intent to name Mark A. Jackson as CEO after Day’s retirement. Noble Corp. provides diversified services — including contract drilling — for the oil and gas industry internationally.

It’s not about the regasification, at least not anymore. The U.S. market for liquefied natural gas (LNG) has enough receipt terminal capacity for now (see related story) and plenty planned for the future. Those whose business it is to worry about gas supply have turned their attention to U.S. market competitors and the potential for upstream problems that could disrupt supply.

FirstEnergy Corp. last week announced plans to hire up to 3,000 employees through 2007, with approximately 1,600 expected to be hired in 2005 and 2006. FirstEnergy companies currently have more than 13,000 employees in Ohio, Pennsylvania, and New Jersey.

Williams on Tuesday executed an agreement with KeySpan Energy Delivery to begin, by November 2007, transporting 100,000 Dth/d of natural gas on its Transco pipeline from Leidy, PA to growing markets in the Northeast. A formal application is expected to be filed with FERC in September.

Cheniere Energy said Monday that it has lined up financing for its 2.6 Bcf/d Sabine Pass LNG terminal, which is expected to be in service in 2007. Cheniere’s limited partnership, Sabine Pass LNG LP, closed a $822 million senior secured credit facility with a syndicate of 47 financial institutions. The credit facility will be used to fund a substantial majority of the costs of constructing the terminal in Cameron Parish, LA. FERC approved the terminal last December. It will be the largest LNG import facility by sendout capacity in North America. Construction is anticipated to start by the end of first quarter of 2005.

Southern Union said it will change from a June 30 fiscal year end to a Dec. 31 calendar year end because of its new more midstream business profile. “Our decision to change to a calendar year end reflects Southern Union’s new business profile — weighted heavily toward the natural gas transportation sector,” said Southern Union President Thomas F. Karam. “We feel that this move will also provide the investment community more comparative information with which to better evaluate Southern Union against its peers.” The change in the company’s reporting period will create a six-month stub period from July 1 through Dec. 31, 2004. A transition report on Form 10-K, including audited financial statements for the six-month stub period, will be filed with the Securities and Exchange Commission on or before March 16, 2005. Southern Union previously announced calendar year 2004 and 2005 earnings guidance of $1.00 to $1.10 per share and $1.45 to $1.55 per share, respectively.

Dynegy Inc. has completed a new $1.3 billion credit facility consisting of a $700 million revolving credit facility that matures in May 2007 and a $600 million term loan that matures in May 2010.

U.S. liquefied natural gas (LNG) terminal development may be impacted by the uncertainty of oversupply in 2007-2009, two industry insiders said last week. And for those projects now on the table, the Gulf Coast may hold the advantage because of its vast pipeline infrastructure.