Backed

As a promotional and lobbying gesture, Mitsubishi Corp.-backed Sound Energy Solutions (SES) committed late Tuesday that its proposed liquefied natural gas (LNG) receiving terminal in Long Beach, CA, harbor will meet all of the new LNG safety standards released earlier in the month by the federal Department of Transportation (DOT). The new rules, however, won’t require any change in design or plans for the receiving terminal, said SES’s Long Beach-based chief executive Tom Giles.

As a promotional and lobbying gesture, Mitsubishi Corp.-backed Sound Energy Solutions (SES) committed late Tuesday that its proposed liquefied natural gas (LNG) receiving terminal in Long Beach, CA, harbor will meet all of the new LNG safety standards released earlier in the month by the federal Department of Transportation (DOT). The new rules, however, won’t require any change in design or plans for the receiving terminal, said SES’s Long Beach-based chief executive Tom Giles.

The natural gas futures market backed itself down against key support levels Thursday morning as traders failed to take advantage of the release of a seemingly price-supportive storage withdrawal figure (195 Bcf). And although the March contract was able to muster a modest upturn in the afternoon, the bears remain focused on downside targets at $5.55, $5.48 and $5.20.

Eagle Energy Partners Inc., which received permission last month from FERC to sell natural gas and power capacity, energy and ancillary services at market-based rates, opened shop on Tuesday with some familiar faces at the helm and behind the scenes, including former Dynegy Inc. Chairman Chuck Watson. The new company plans to focus on physical energy delivery for producers, suppliers and end users.

California’s first merchant natural gas storage facility, Canadian-backed Wild Goose Storage, was fined $51,500 and criticized by state regulators Thursday for its handling of its change in ownership, which occurred when EnCana was formed by the merger of Alberta Energy Co. and PanCanadian last year. Wild Goose’s certificate to operate was amended, but the company still needs to file a formal application with state regulators for approval of its new ownership.

ChevronTexaco Natural Gas, to be headquartered in Houston and staffed by as many as 100 energy traders, will enter the wholesale energy merchant business in April, backed by a corporate “AA” credit rating, strong finances resources and perhaps as important, no “baggage,” after severing long-term natural gas purchase and sales contracts with Dynegy Inc. on Friday.

Duke Energy found itself backed into a corner last week, facing criticims for new reports about a formal SEC investigation, its 71% drop in third quarter earnings and its announcement that it may have to take a $19 million special charge in the fourth quarter related to a settlement agreement that was filed Tuesday with North Carolina and South Carolina state regulators (see related story).

The U.S. Senate last Thursday shot down a bid by Sen. Jon Kyl (R-AZ) to eliminate a Democrat-backed federal requirement included in the omnibus energy bill (S. 517) that electric utilities generate 10% of their electricity using renewable energy fuels, such as solar energy, biomass and wind.

Silicon Valley met the energy crisis and backed off, clearing the way for Calpine Corp. and joint-venture partner, Bechtel, to develop a $400 million, 600 MW, natural gas-fired power plant, the Metcalf Energy Center, at the southern-most end of San Jose, CA. If all goes well, Calpine will begin construction this year and have the power plant running by summer 2003.