Cheniere Energy, Inc. said Thursday the Federal Energy Regulatory Commission has issued the Draft Environmental Impact Statement (DEIS) for Cheniere’s proposed Corpus Christi liquefied natural gas receiving terminal and associated pipeline. The facilities are designed with initial processing capacity of 2.6 Bcf/d. In the DEIS, FERC concludes that approval of the proposed project, with appropriate mitigating measures as recommended, would have limited adverse environmental impact, Cheniere said. The public comment period on the draft runs through January 4, 2005. FERC will conduct a public scoping meeting on Dec.15, 2004 to give the public an opportunity to present oral comments on the environmental impact described in the DEIS. The Houston-based LNG developer has a 66.7% interest in the Corpus Christi project. It holds a 100% interest in an LNG project at Sabine Pass in Cameron Parish, LA, which just received its final environmental okay (see Daily GPI, Nov. 15), and is also a 30% limited partner in Freeport LNG Development, L.P., for a terminal in Freeport, TX which already has received FERC authorization and has a five-year construction timetable (see Daily GPI, Sept. 16). Cheniere also conducts exploration for oil and gas in the Gulf of Mexico.
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Industry Brief
Cheniere Energy, Inc. said Thursday the Federal Energy Regulatory Commission has issued the Draft Environmental Impact Statement (DEIS) for Cheniere’s proposed Corpus Christi liquefied natural gas receiving terminal and associated pipeline. The facilities are designed with initial processing capacity of 2.6 Bcf/d. In the DEIS, FERC concludes that approval of the proposed project, with appropriate mitigating measures as recommended, would have limited adverse environmental impact, Cheniere said. The public comment period on the draft runs through January 4, 2005. FERC will conduct a public scoping meeting on Dec.15, 2004 to give the public an opportunity to present oral comments on the environmental impact described in the DEIS. The Houston-based LNG developer has a 66.7% interest in the Corpus Christi project. It holds a 100% interest in an LNG project at Sabine Pass in Cameron Parish, LA, which just received its final environmental okay (see Daily GPI, Nov. 15), and is also a 30% limited partner in Freeport LNG Development, L.P., for a terminal in Freeport, TX which already has received FERC authorization and has a five-year construction timetable (see Daily GPI, Sept. 16). Cheniere also conducts exploration for oil and gas in the Gulf of Mexico.
Industry Brief
Pioneer Drilling said it will buy seven drilling rigs and related equipment from Wolverine Drilling for $28 million in cash. Wolverine, based in Kenmare, ND, owns a fleet of seven mechanical 500 to 1,000 hp rigs, capable of drilling to depths of 7,000 to 15,000 feet. Robert S. Blackford, president of Wolverine, will become Pioneer’s North Dakota division manager. The transaction will increase Pioneer’s fleet to 43 drilling rigs. “We are very excited about expanding our operations into the prolific oil and gas regions of the Rocky Mountains,” said Pioneer CEO Stacy Locke. “Wolverine has operated in the Rockies since 1994 and has a significant presence in the Williston Basin of North Dakota and Montana. Six of the seven rigs are currently working under contract and we anticipate that the fleet utilization will remain high for the foreseeable future.”
Industry Brief
Pioneer Drilling said it will buy seven drilling rigs and related equipment from Wolverine Drilling for $28 million in cash. Wolverine, based in Kenmare, ND, owns a fleet of seven mechanical 500 to 1,000 hp rigs, capable of drilling to depths of 7,000 to 15,000 feet. Robert S. Blackford, president of Wolverine, will become Pioneer’s North Dakota division manager. The transaction will increase Pioneer’s fleet to 43 drilling rigs. “We are very excited about expanding our operations into the prolific oil and gas regions of the Rocky Mountains,” said Pioneer CEO Stacy Locke. “Wolverine has operated in the Rockies since 1994 and has a significant presence in the Williston Basin of North Dakota and Montana. Six of the seven rigs are currently working under contract and we anticipate that the fleet utilization will remain high for the foreseeable future.”
Industry Brief
SignalEnergy Inc., a junior independent based in Alberta, said it has acquired Predator Exploration Ltd. and an undisclosed private oil and gas company. The all-share deal is worth about C$21.9 million for both companies, including the assumption of debt. Predator’s assets include natural gas properties in British Columbia and western Alberta. SignalEnergy said when the deal is completed, its production rate will increase 240%. SignalEnergy’s exploration focus is in Alberta, in Twining, Ferrier and Carrot Creek. The transactions are expected to be completed before the end of the year.
Industry Brief
SignalEnergy Inc., a junior independent based in Alberta, said it has acquired Predator Exploration Ltd. and an undisclosed private oil and gas company. The all-share deal is worth about C$21.9 million for both companies, including the assumption of debt. Predator’s assets include natural gas properties in British Columbia and western Alberta. SignalEnergy said when the deal is completed, its production rate will increase 240%. SignalEnergy’s exploration focus is in Alberta, in Twining, Ferrier and Carrot Creek. The transactions are expected to be completed before the end of the year.
Industry Brief
As part of the agency’s royalty-in-kind (RIK) program, the Minerals Management Service (MMS) has requested written offers to purchase 387,000 MMBtu/d of royalty gas produced from federal leases in the Gulf of Mexico. The production is delivered into 11 offshore pipeline systems, including ANR Nearshore, Columbia Gulf Bluewater, Central Texas Gathering System, Garden Banks, Mississippi Canyon, Matagorda Offshore Pipeline System, Seagull Shoreline, Stingray, Tennessee Gas 800 Leg, Tetco East Louisiana and the Transco Southeast Lateral. MMS said it may award a contract on the basis of the initial offer received without discussion. Accordingly, each initial offer should be submitted on the most favorable terms that the offerer can submit. However, MMS may negotiate with offerers in the event offers of similar or unanticipated value are received. MMS said the Henry Hub and/or Nymex are preferred indices on all packages in addition to the named indices. Initial deliveries of royalty gas to the buyer will commence on Nov. 1. The royalty gas delivery period will be for a term of five months ending March 31, 2005 or 12 months ending Oct. 31, 2005, depending on the value of offers received. Written offers can be submitted via facsimile at (303)-231-3846 by 11 a.m. (CT) on Oct. 6. The agency said it will award the offers by 3:00 p.m. on Oct. 7. For more information, contact Mike DeBerard at (303)-231-3884, Karen Bigelow at (303)-231-3890, or Jeff Olson at (303)-231-3225. The MMS-implemented RIK program generates revenues through receiving oil and gas royalties in kind, rather than in cash, and competitively selling the commodities in the marketplace.
In Brief
Cheniere Energy Inc. announced Thursday that its affiliate, J&S Cheniere S.A. (“J&S”) has executed a time charter for its second LNG Vessel. J&S signed a time charter agreement for up to ten years with Kawasaki Kisen Kaisha, Ltd. (“K-Line”) to charter a new-build 145,000 cubic meter capacity LNG Vessel being constructed by Kawasaki Shipbuilding Corp. The vessel is expected to be delivered in the fourth quarter of 2007. In August of 2003 J&S chartered its first LNG vessel, the Tenaga Empat. In January of 2004 J&S signed a transportation agreement for the Tenaga Empat and has been actively transporting LNG cargoes into the US & Europe. Houston-based Cheniere Energy is developing Gulf Coast LNG receiving terminals near Sabine Pass, LA and near Corpus Christi, TX. Cheniere is also a 30% limited partner in Freeport LNG Development, L.P., which is developing an LNG receiving terminal in Freeport, TX.
Industry Brief
NGAS Resources, Inc. announced Thursday an agreement to acquire approximately 23.2 Bcfe of proved gas reserves and 75,000 gross acres (61,875 net acres) of leases for $27 million, or $1.16 per Mcfe. The privately negotiated transaction includes substantially all the assets of Stone Mountain Energy Co., L.C. located in Bell, Harlan, and Leslie Counties, Kentucky, and Lee County, Virginia. The assets to be purchased include 113 oil and gas wells currently producing approximately 2,700 Mcfe/d. Gas production is delivered through a gathering system owned by Duke Energy Gas Services. “This major acquisition paves the way for future growth in line with our long-term strategic plan,” said William S. Daugherty, President of the Lexington, KY-based NGAS. “Our acreage position in the Appalachian Basin will be expanded to over 250,000 gross acres (170,000 net acres). The acquisition will also boost our current net daily production to approximately 5,000 Mcfe/d and will increase our proved oil and gas reserves to approximately 55 Bcfe, not including 2004 reserve adjustments. This transaction offers us opportunities to expand our throughput to major natural gas markets serviced through Duke’s system and strengthen our competitive position in the region.” NGAS changed its name from Daugherty Resources in June 2004.
Industry Brief
EnCana Corp. has closed a previously announced sale of some non-core conventional natural gas assets that produce approximately 7,250 boe/d after royalties (9,400 boe/d before royalties) to a Calgary-based producer for $219 million. The company said it would use the sale proceeds for general corporate purposes, including debt repayment. The sale is part of a divestiture program EnCana announced when it bought Denver-based Tom Brown Inc. in April (see Daily GPI, July 26). Since then, the Calgary-based producer has reached agreements to sell close to $900 million in assets, which produce 28,000 boe/d. So far this year, EnCana has sold conventional, non-core properties producing about 50,000 boe/d for total proceeds of $1.3 billion. Including all 2004 acquisitions and divestitures, EnCana still expects to grow production by 15% this year to between 725,000 and 765,000 boe/d.