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Cheniere Energy, which is planning three liquefied natural gas import terminals along the Gulf Coast, said it awarded the front end engineering design contracts for the Sabine Pass, LA, and Corpus Christi, TX, terminals to Black & Veatch Pritchard Inc. (B&V). The design work is expected to be completed for both sites by the end of September. B&V also worked for Cheniere on its first LNG site in Freeport, TX. An application for the Freeport terminal was filed with FERC last month (see Daily GPI, April 1). Cheniere said it plans to file FERC applications for the remaining two projects by next January. The two sites that Cheniere has chosen appear to be “exceptional locations for both access and permitting,” said Dwayne R. Stone, president of Black & Veatch. Cheniere CEO Charif Souki added that the sites were selected because they have “deepwater access, closeness to open water, safety, sufficient land, local demand for gas and pipeline access. Furthermore, the local communities at all three sites have been very welcoming and supportive. By the end of 2007, we hope to have facilities in place, which will allow suppliers the ability to bring 5 to 6 Bcf/d of gas into the country through these strategically selected Gulf Coast locations. It will give these importers flexibility and minimize the probability of delays to their ships because of weather, traffic, or unexpected channel closures, through the availability of multiple port locations, a multitude of docks, plentiful storage and pipeline access.”

Transwestern will install equipment early next month along its San Juan Lateral from Ignacio, CO to the Blanco (NM) Hub and from Blanco to Thoreau, NM to ensure continued system reliability. The work will reduce lateral flow to zero in both segments April 3-7. Ignacio-Blanco will be restored to its normal 716,000 MMBtu/d on April 8, while Blanco-Thoreau will be raised to 800,000 MMBtu/d April 8-14 and restored to its normal 860,000 MMBtu/d April 15.

Local opposition was already forming earlier this week along the Southern California coast in response to Houston-based Crystal Energy LLC’s $125 million proposal to transform an offshore oil platform in federal waters 11 miles off the coast of Oxnard, CA, into a liquefied natural gas receiving terminal that would pipe gas to shore through a new underwater pipeline. The gas would come onshore near the Reliant Energy’s coastal Mandalay Bay Power Plant.

When industrial electricity demand rebounds, along with continued growth in residential and commercial sectors, a looming imbalance between growing demand and depressed development of new generating plants could further stimulate the wholesale power market later this year or next, according to San Jose, CA-based Calpine Corp.’s CEO Peter Cartwright, speaking to financial analysts Thursday on an earnings announcement conference call.

ANR said the critical outage along its Southwest Mainline just upstream of the New Windsor Compressor Station in Illinois remained in effect Tuesday. Investigation and analysis of Sunday night’s rupture (see Daily GPI, Feb. 4) continue. ANR does not expect the impacted facilities to become operational again until late this week. “Transportation service through this area will be evaluated and scheduled on a daily basis. Availability of secondary and interruptible transportation will depend on Firm Primary nominations,” the pipeline said.

Pacific Gas & Electric declared a systemwide Stage 2 high-inventory OFO for Saturday. It carried penalties of $1/Dth along with a relatively lenient 7% tolerance for positive daily imbalances.

One of the three-member Arizona Corporation Commission (ACC), Jim Irvin, is being targeted, along with a former commission executive secretary, over their alleged roles in causing the failure of the proposed purchase of Las Vegas, NV-based Southwest Gas Corp., by Southern Union Co. Irvin was the star witness at the end of last week at an ongoing civil jury trial in Phoenix.

Olympic Pipeline Co., along with three current and former pipeline employees, and ex-pipeline operator, Equilon Pipeline Co. LLC, pleaded guilty and no contest, respectively, in a Seattle federal courtroom last Wednesday to criminal charges stemming from the fatal rupture and subsequent gasoline spill and explosion on the Olympic petroleum products line in Bellingham, WA, in mid-1999.

Olympic Pipeline Co., along with three current and former pipeline employees, and ex-pipeline operator, Equilon Pipeline Co. LLC, pleaded guilty and no contest, respectively, in a Seattle federal courtroom Wednesday to criminal charges stemming from the fatal rupture and subsequent gasoline spill and explosion on the Olympic petroleum products line in Bellingham, WA, in mid-1999.