2008

PNM Resources and a subsidiary of Continental Energy Systems last week announced a swap that would dramatically build Continental’s natural gas operations and allow PNM to give full attention to its electric utilities in New Mexico and Texas.

Unit operating costs in the oil- and gas-rich Permian Basin of Texas have increased significantly since 2004, with the average operating costs for gas fields up 45% to $1.35/Mcf, according to a study by Ziff Energy Group. Oilfield costs over the period jumped 34% to $10.42/bbl.

Canadian Superior Energy Inc. and its partners, BG Group Inc. subsidiary BG International Ltd. and Challenger Energy Inc., have reported a new natural gas discovery about 60 miles off Trinidad.

After digesting and dismissing a larger-than-expected storage withdrawal report in morning trade and testing $8 resistance-turned-support, February natural gas futures did an about-face to the upside just before noon EST on Thursday. Fueled by talks of further interest rate cuts, the contract notched a new $8.280 high for the move before settling the day at $8.259, up 16 cents from Wednesday’s finish.

Colder-than-normal weather will be seen across most of the northern United States through March, with warmer-than-normal temperatures spread across the rest of the country, WSI Corp. forecasters said.

As significant cold continued to move across the Midwest and into the Northeast, February natural gas futures continued to build on Friday’s and Monday’s gains on Wednesday, pushing 36.7 cents higher to close at $7.850, one cent shy of the day’s high.

San Diego-based Sempra Energy indicated at the start of this month that it is on target to start first shipments of liquefied natural gas (LNG) in early 2008 at its Costa Azul facility on the Pacific Coast of North Baja California, Mexico, and in 2009 at its Cameron facility on the Louisiana Gulf Coast. CEO Donald Felsinger gave the latest status report during a third quarter earnings conference call Nov. 1, noting the Baja California plant will add a $125 million nitrogen injection unit at the request of one of the terminal’s shippers.

San Diego-based Sempra Energy is on target to start first shipments of liquefied natural gas (LNG) in early 2008 and 2009, respectively, for its Costa Azul and Cameron facilities along the Pacific Coast of North Baja California, Mexico, and the Louisiana Gulf Coast, respectively, CEO Donald Felsinger told a third quarter earnings conference call Thursday. He also said the Baja California plant will add a $125 million nitrogen injection unit at the request of one of the terminal’s shippers.

Kern River Gas Transmission is holding an open season through Jan. 11, 2008 to gauge shipper interest in expanded firm transportation to Utah, Nevada or California on its pipeline system.